By Arathy Somasekhar

April 10 (Reuters) - Oil prices fell around 1% 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 73 cents, 1.1%, to $64.73 a

barrel by 01:08 a.m. GMT, while U.S. West Texas Intermediate

crude futures lost 49 cents, or 0.8%, to $61.86.

The benchmarks had settled 4% higher on Wednesday after

dropping as much as 7% during the session.

Trump raised the tariff rate for China to 125%, effective

immediately, from the previously announced 104% tariff that had

kicked off earlier on Wednesday.

China also announced an additional import levy on U.S.

goods, imposing an 84% tariff from Thursday.

Meanwhile, U.S. crude inventories rose by 2.6 million

barrels in the week to April 4, the Energy Information

Administration said, nearly double the expectations in a Reuters

poll for a 1.4-million-barrel rise.

The Keystone oil pipeline from Canada to the United States

remained shut on Wednesday following an oil spill near Fort

Ransom, North Dakota, while plans to return it to service were

being evaluated, its operator South Bow ( SOBO ) said.