Oil erased gains as global markets were buffeted by mixed signals from the Federal Reserve and Donald Trump.

Brent (BZ=F) traded below $71 a barrel, with US equity futures also reversing an earlier increase. Fed Chair Jerome Powell acknowledged the high degree of uncertainty from the US president’s policies, but said the central bank is in no hurry to cut rates.

Trump, meanwhile, said the Fed should reduce borrowing costs, splitting with policymakers weighing the economic cost of his tariff push. New Fed projections showed lower growth forecasts but higher inflation estimates. The Treasury market boosted its bets on lower rates. Crude remains markedly below its mid-January peak, as a confluence of bearish factors pressures prices. While the escalating trade war threatens to hit energy demand as tariffs and counter levies are imposed, OPEC and its allies are set to raise output from April, contributing to weaker global balances.

“US tariff news is likely to keep oil prices volatile,” said Giovanni Staunovo, a commodity analyst at UBS Group AG. “That said, we retain our moderately constructive outlook for crude prices.”

US inventories of gasoline, meanwhile, fell last week to the lowest since the start of the year, while distillates — a category that includes diesel — also sank, allaying concerns about consumption. Crude stockpiles rose less than flagged in an industry report, while levels dropped at the Cushing, Oklahoma, hub.