Investing.com-- Oil prices fell slightly in Asian trade on Wednesday as markets remained on edge over tariff-related headwinds and increasing global production, with focus turning to stimulus measures in top importer China. 

Prices had tumbled to a five-month low on Tuesday as investors fretted over worsening demand amid economic headwinds from increased U.S. trade tariffs. This came as U.S. President Donald Trump delivered on his threats of higher tariffs against China, Canada, and Mexico. 

Oil markets were also rattled by reports that the Organization of Petroleum Exporting Countries and allies (OPEC+) will proceed with a plan to begin increasing production, albeit marginally, from April.

Still, crude prices found some relief from China- the world’s biggest oil importer- setting a 5% economic growth target for 2025 while outlining a slew of stimulus measures. Industry data also showed a bigger-than-expected draw in U.S. inventories. 

Brent oil futures expiring in May fell 0.2% to $70.93 a barrel, while West Texas Intermediate crude futures fell 0.3% to $67.46 a barrel by 20:51 ET (01:51 GMT). Both contracts remained close to a five-month low hit earlier this week. 

China targets 5% GDP, outlines stimulus plans 

China set a gross domestic product target of 5% for 2025, keeping the figure unchanged for a third consecutive year.

The figure was revealed at the opening of the annual meeting of the National People’s Congress, China’s most important political meeting. 

Beijing outlined a higher budget deficit for 2025, heralding more fiscal spending, and also promised more action to boost local consumption, which has been a major point of pressure on local growth. 

Beijing will also ramp up its debt issuance in 2025 to allocate more resources towards consumer subsidies. 

US inventories see bigger-than-expected draw- API

 Data from the American Petroleum Institute showed that U.S. oil inventories shrank nearly 1.5 million barrels in the week to February 28, more than expectations for a draw of 0.3 mb. 

The reading usually heralds a similar print from official inventory data, which is due later on Wednesday. U.S. inventories shrank last week after four straight weeks of outsized builds.

But signs of a draw in the past week raised some hopes that fuel demand was improving and U.S. supplies were tightening. 

Oil prices were battered by Trump also calling on higher energy production, domestically and abroad.