U.S. oil prices slipped on Tuesday on tariff drama between Washington and Beijing, then pared losses after an official said President Donald Trump plans to restore his "maximum pressure" campaign on Iran in a bid to drive down Iranian oil exports to zero.

Oil prices edged lower and while stricter enforcement of sanctions on Iran could put as much as 1 million barrels a day of oil supply at risk, the reduced flows from Iran won’t help lower prices, according to ING.

A Ukrainian drone attack overnight sparked a fire at an oil depot in Russia's southern region of Krasnodar, its governor said early on Wednesday, with 55 people fighting the blaze. A series of drone attacks by Ukraine on Russia's energy facilities have sparked fires in recent days at a major oil refinery in the Volgograd region,