Oil Retreating Due to a Sudden increase in US Inventories and Trump’s threat to stimulate

Oil prices fell by more than 1% Wednesday, December 23, after a sector report showed an unexpected increase in US crude oil inventories, while US President Donald Trump shocked the markets after he threatened not to sign a long-awaited aid package linked to Covid-19.

Brent crude futures fell 71 cents, or 1.4%, to $ 49.37 a barrel, while U.S. West Texas Intermediate crude futures fell 67 cents, or 1.4%, to $46.35 a barrel.

Both decades fell by about 2% on Tuesday, declining for the second consecutive session.

In addition to the doubts surrounding the situation in the United States, the oil market is still tense about the recovery of demand, as a new rapidly spreading strain of the coronavirus is ravaging Britain, which prompted many countries to close their borders to them.

A report from the American Petroleum Institute yesterday said that US crude inventories increased by 2.7 million barrels in the week ending December 18th, compared to analysts’ expectations for a 3.2 million barrel drop.

Oil has also been hit by Trump’s threat not to sign $892 billion aid package, saying he wants Congress to raise the amount of stimulus lawmakers approved on Monday.