Oil Continues Its Losses With Increasing Pessimism

Oil prices fell on Tuesday, December 8, continuing the losses incurred in the previous session, at a time when California tightened general isolation measures to confront the Coronavirus pandemic during Christmas.

Brent crude futures were down 51 cents, or 1.1%, to $ 48.28 a barrel by 07:44 GMT. US West Texas Intermediate crude futures fell 45 cents, or 1%, to $ 45.31 a barrel. The two benchmarks lost about 1% on Monday.

After the rise in oil prices last week against the backdrop of plans to introduce anti-Corona vaccines and the Organization of the Petroleum Exporting Countries (OPEC) and allies, known as the OPEC+ group, to curb supply increases, analysts say they are closely following US lawmakers’ efforts to approve a new economic stimulus package.

The package is needed to drive job growth and thus energy demand.

Data due to be released by the American Petroleum Institute later today, Tuesday, and by the US government on Wednesday, is expected to show a decrease in US oil inventories last week, while inventories of refined products will rise.

The dollar is also putting pressure on commodity prices after it rose against a basket of currencies.