Oil prices fell by nearly $3/ bbl on April 10, wiping out the prior session's rally, as investors reassessed the details of a planned pause in sweeping U.S. tariffs and focus shifted to a deepening trade war between Washington and Beijing.

U.S. West Texas Intermediate crude futures fell $2.91, or 4.7%, to $59.44/ bbl by 1:30 p.m. EDT (1730 GMT). Brent crude futures fell $2.77, or 4.2%, to $62.71/ bbl.

Both contracts had gained more than $2/ bbl on April 9 after U.S. President Donald Trump paused the heavy tariffs he had announced against dozens of U.S. trading partners a week ago, marking an abrupt U-turn less than 24 hours after the levies took effect.

At the same time, however, Trump also raised tariffs against China. U.S. tariffs on Chinese imports now total 145%, the White House told media on April 10.

China also announced an additional import levy on U.S. goods, imposing an 84% tariff on April 3.

Higher tariffs against China are likely to prompt lower U.S. crude imports by Beijing, backing up supply and raising U.S. storage levels, trading advisory firm Ritterbusch and Associates told clients on April 10.

U.S. crude oil exports to China fell to 112,000 bbl/d in March, nearly half of last year's 190,000 bbl/d, data from vessel tracker Kpler showed.

Meanwhile, U.S. crude stockpiles rose by 2.6 MMbbl last week, government data showed on April 9, almost double the 1.4-MMbbl increase analysts projected in a Reuters poll.

Macquarie analysts on April 10 said they expect another build this week.

The U.S. is also moving ahead with a 10% levy on all of its imports.

The U.S. Energy Information Administration on April 10 lowered its global economic growth forecasts and warned tariffs could weigh heavily on oil prices, as it slashed its U.S. and global oil demand forecasts for this year and next. 

"The tariff-driven expectation of reduced demand amid the continued possibility of a U.S. recession will remain front and center of trader concerns in likely keeping a lid on near term price gains," Ritterbusch and Associates said.

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