Oil prices fell sharply in Asian trade on Thursday as fears of a demand slowdown and a global recession ramped up in the face of sweeping trade tariffs from U.S. President Donald Trump.

Oil was already nursing some losses this week, as a rebound from over three-year lows ran out of momentum, while tensions in the Middle East and between Russia and Ukraine attracted only a small risk premium.

Brent oil futures expiring in June fell 2.5% to $73.11 a barrel, while West Texas Intermediate crude futures fell 2.7% to $69.30 a barrel by 22:05 ET (02:05 GMT). Both contracts had fallen as much as 3% earlier in the session.

Oil was pressured by U.S. data showing a substantially bigger-than-expected build in inventories, which drummed up concerns over slowing fuel demand in the country.

Focus is also on a meeting of the Organization of Petroleum Exporting Countries and allies (OPEC+) due later in the day, where the cartel is expected to outline plans to increase production.

Trump announced a 10% tariff on most U.S. imports, and imposed tariffs on major trading partners equivalent to roughly half the duties they charge on U.S. goods.

Source : Investing.com