Oil prices closed more than $2 lower a barrel on Thursday, erasing a previous session's surge as investors reassessed a planned delay in the implementation of tariffs by the United States.
Meanwhile, attention also turned to the escalating trade war tensions between Washington and Beijing.
West Texas Intermediate (WTI) crude fell $2.28 (3.7%) to settle at $60.07 and Brent fell $2.15 (3.3%) to $63.33 a barrel.
Both contracts rose more than $2 a barrel on Wednesday after US President Donald Trump announced a delay in tariffs.
This will temporarily halt the implementation of the heavy tariffs he announced on dozens of trading partners a week ago, marking a sharp change in policy less than 24 hours after the tariffs went into effect.
However, Trump also raised tariffs on China by 145%. China retaliated with 84% tariffs.
Trade advisers Ritterbusch and Associated said the high tariffs on China are likely to prompt Beijing to reduce its imports of US crude oil, supporting a supply glut and increasing its stockpile levels.
Data from Kpler showed US crude oil exports to China fell to 112,000 barrels per day in March, nearly half the 190,000 barrels a day a year earlier.
