Oil is Declining With the Faltering US Stimulus Talks

Oil prices fell on Wednesday after US President Donald Trump dampened hopes for a fourth stimulus package to support the economy affected by the Coronavirus pandemic, in addition to an more than expected increase in US crude stocks.

US West Texas Intermediate crude futures were down 42 cents, or 1 %, to $ 40.25 a barrel. Brent crude futures fell 30 cents, or 0.7 %, to $ 42.35 a barrel.

President Trump, who is still being treated for Covid-19, ended talks with Democrats on Tuesday about an economic aid package in the United States, the world’s largest oil consumer, a few weeks before the presidential election.

Prices also faced pressure due to data from the American Petroleum Institute, which revealed that US crude inventories increased by 951 thousand barrels last week.

But restrictions in place on supplies limited losses.

On the other hand, D-companies secured the capacity of offshore oil production platforms and evacuated workers on Tuesday as Hurricane Delta hit the US oil production area in the Gulf of Mexico.

The storm stopped 29.2% of offshore oil production in the Gulf, which constitutes 17% of total US crude production