Oil prices have inched lower due to fears that fuel demand growth in the US will drop as a result of the resurgence of Covid-19 infections.

The drop is also due to halt in talks over a new stimulus deal in the US amid an economic crisis.

Brent crude futures fell $0.06 to $45.03 a barrel, while the US West Texas Intermediate (WTI) crude futures were down by $0.02 reaching $41.93 per barrel, Reuters reported.

The major uncertainty currently in the oil market is the resurgence of Covid-19 cases. This will finally decide how fast the demand for fuel rebounds.

According to analysts, rising coronavirus infections remain to be the main uncertainty for growth of fuel demand and oil prices.

AxiCorp market strategist Stephen Innes was quoted by the news agency as saying: “It really comes down to the demand situation.

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.

Company Profile – free sample

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 GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“We’re caught in limbo trying to collect our thoughts on how the (coronavirus) curve is going to work. Is the flattening in the US going to outweigh flare-ups globally?”

Meanwhile, talks between top Democrats in the US Congress and the White House on a new coronavirus relief bill are lacking progress.

Democrats said that US President Donald Trump might have to issue executive orders if he does not seek further negotiations.

ANZ Research said in a note: “The virus relief package remains the last hope to boost (fuel) demand, with the US driving season coming to an end soon.”

Over the week, a weaker US dollar supported crude prices. A weaker currency makes dollar-denominated commodities such as oil more affordable to holders of other currencies because the commodities become cheaper.

The US dollar value against six overseas currencies fell to its lowest since 2018.