Oil prices experienced a drop on Wednesday after US President Donald Trump abruptly called off talks with Democrats on an economic aid package for the Covid-19 pandemic-hit nation.
Brent crude futures dropped by 1.7% to $41.91 per barrel, while US West Texas Intermediate (WTI) crude oil futures fell 2.1% to $39.80 a barrel, Reuters reported.
Go deeper with GlobalData
President Trump’s announcement that he was ending talks with Democrats on the aid bill resulted in the stock market sliding. The bill will support Americans, struggling with unemployment, and help state and local governments to recover from the Covid-19 pandemic.
Data from the American Petroleum Institute, which revealed that US crude oil stocks increased by 951,000 barrels last week – more than anticipated, also played its part in the drop in oil prices.
Online brokerage chief market strategist AxiCorp Stephen Innes said: “(This was) not exactly what the recovery doctor ordered as the oil market was already tanking from a two-week high after President Trump quashed hope for a pre-election stimulus deal.”
However, losses were limited by restrictions on the supply side.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataOffshore oil and gas producers in the US Gulf of Mexico are shutting wells and evacuating workers due to Hurricane Delta storm, which turned into a major Category 4 hurricane.
The Lederne labour union in Norway said it will extend its ongoing oil strike from 10 October if a wage deal is not reached.
Earlier this week, six offshore oil and gas fields were closed, decreasing the country’s output capacity by 8%.
