Oil prices fell on Tuesday as concerns about a brewing trade war between the United States and the European Union heightened fears of weaker fuel demand due to slowing economic activity.

Oil prices extended their gains on Friday after closing at their highest levels in more than two months during the previous session, driven by expectations that global governments may boost policy support to stimulate economic growth, which could, in turn, increase fuel demand.

Oil prices saw a slight increase on Monday, driven by escalating fighting between Russia and Ukraine over the weekend. However, concerns about weakening fuel demand in China and forecasts of a global oil surplus kept market gains in check.

Oil prices fell on Wednesday as investors reassessed whether China's recent stimulus plans would effectively boost the economy and drive fuel demand growth in the world's largest crude importer.

OPEC’s forecast for oil demand growth in 2024 remains unchanged.

Oil prices climbed about 2% to a one-week high on Monday, buoyed by hopes of rising fuel demand this summer despite a stronger U.S. dollar and expectations the U.S. Federal Reserve (Fed) will leave interest rates higher for longer.