Oil prices fell more than 2% on Wednesday as a large build in U.S. crude and gasoline stockpiles signaled weaker demand, while worries about a new China-U.S. trade war fueled fears of softer economic growth.

U.S. crude oil inventories increased more than expected as production picked up, while the build in gasoline stocks extended to almost three months.

Chinese tariffs on U.S. crude oil are expected to reduce demand for American crude exports, potentially impacting US oil production.