Oil prices fell on Thursday, retreating from earlier gains, after the International Energy Agency's director warned of weaker demand in China, while the market also watched for potential new U.S. sanctions curbing Russian crude flows and an OPEC+ decision on hiking output in July.

A U.S. trade court struck down President Trump's tariffs, sparking a rise in oil prices as traders responded to the legal shift and stronger-than-expected demand signals.

Investing.com--Oil prices retreated Thursday, handing back earlier gains after data showed the U.S. economy contracted in the first quarter, suggesting the Trump administration’s volatile trade policies were weighing on economic activity.