Ammon News - Oil prices retreated on Thursday as U.S. President Donald Trump ramped up a trade war with China, even as he announced a 90-day pause on tariffs aimed at other countries.

Brent futures fell 77 cents, or 1.18%, to $64.71 a barrel by 0320 GMT, while U.S. West Texas Intermediate crude futures fell 65 cents, or 1.04%, to $61.70.

Following the tariff pause for most countries, the benchmark crude contracts had settled 4% higher on Wednesday after dropping as much as 7% during the session.

Trump, however, raised the tariff rate for China to 125% effective immediately, from the previously announced 104% tariff that had kicked off earlier on Wednesday.

The higher U.S. tariffs on China leave plenty of uncertainty in the markets, ING commodities strategists said in a research note on Thursday.

"This uncertainty is still likely to drag on global growth, which is clearly a concern for oil demand," they said. Reuters