Investing.com-- Oil prices fell Thursday, retreating after the previous session’s strong gains, after the release of disappointing U.S. growth data.

At 10:10 ET (14:10 GMT), Brent Oil Futures expiring in April fell 0.3% to $72.80 per barrel, while West Texas Intermediate WTI crude futures dropped 0.3% to $69.47 per barrel.

U.S. economic growth slowed in Q4

Crude prices slipped lower Thursday after data released earlier Thursday showed that U.S. economic growth slowed in the fourth quarter, according to a final revision of government data.

Gross domestic product increased at an annualized rate of 2.4% during the period, compared to a rise of 3.1% in the July-September quarter, figures from the Commerce Department’s Bureau of Economic Analysis showed.

This followed the announcement by President Donald Trump on Wednesday of his intention to impose a 25% tariff on all imported automobiles and parts, effective April 2.

Markets were cautiously assessing the potential repercussions of these tariffs, as they could lead to broader economic implications affecting oil demand and market stability.

The automotive industry is a significant consumer of energy, particularly oil. Tariffs that increase vehicle prices may suppress auto sales, potentially reducing manufacturing output and, consequently, the demand for oil products.

U.S. crude inventories fall - EIA

The crude benchmarks had jumped more than 1% in the previous session, climbing to their highest level since March 3, after the U.S. Energy Information Administration (EIA) released its weekly Petroleum Status Report on Wednesday, for the week ending March 21.

U.S. crude oil inventories decreased by 3.3 million barrels to 433.6 million barrels, a drawdown exceeding analysts’ expectations of a 956,000-barrel reduction.

This decline suggests a tightening supply in the crude oil market.

Gasoline stocks fell by 1.4 million barrels, though the decline was slightly less than analysts’ expectations of 1.8 million barrels.

Distillate inventories, which include diesel and heating oil , dropped by 420,000 barrels, lower than the forecast 1.6 million-barrel draw.

Oil was further supported by President Trump’s Monday announcement, threatening to impose 25% tariffs on all imports from countries that purchase oil or gas from Venezuela, effective April 2.

Venezuela’s oil exports are a significant component of its economy, with China is its largest oil buyer.

The announcement has raised concerns about potential disruptions in global oil supply chains and has contributed to higher oil prices.

Uncertain Russia-Ukraine truce

Meanwhile, the U.S. brokered separate agreements on Tuesday with Ukraine and Russia to halt attacks at sea and on energy infrastructure.

As part of these deals, Washington committed to advocating for the lifting of certain sanctions on Moscow, particularly those affecting Russian agriculture and fertilizer exports.

However, within hours of the truce talks, both Russia and Ukraine accused each other of breaking the U.S.-brokered agreement to stop attacking energy facilities, while the European Union said it would not accept Russia’s conditions for a proposed ceasefire in the Black Sea.

Look for lower trading range - Citi

Crude prices had climbed to one-month highs on heightening geopolitical risks and supply concerns, but Citigroup sees the likelihood of a lower trading range through most of 2025.

Ahead of the options expiry, there have been decent volumes around the $75/bbl-strike in the Brent contract, analysts at Citi said, in a note dated March 27.

“Yet, there appears to be little appetite to be long on these levels, and this upswing may just provide funds with a better opportunity to initiate new shorts,” the bank added.

“We recommend layering in downside exposure/insurance, as we expect the prior $70-$90 price range to move down to $60-$75 through 2025,” Citi added.

(Ayushman Ojha contribued to this article.)