Oil Prices Fall on U.S. Stimulus Impasse, Rising U.S. Crude Stockpiles | Investing News

SINGAPORE (Reuters) – Oil prices fell on Wednesday after U.S. President Donald Trump dashed hopes for a fourth stimulus package to boost the coronavirus-hit economy and on a larger-than-expected increase in U.S. crude inventories.

U.S. West Texas Intermediate (WTI) crude

oil futures declined 42 cents, or 1%, to $40.25 a barrel by 0648 GMT while Brent crude

futures fell 30 cents, or 0.7%, to $42.35 a barrel.

“Crude prices got hammered with one-two punch after President Trump sent all risky assets into freefall after ending negotiations on fiscal stimulus and after US crude stockpiles posted their first build in four weeks,” said Edward Moya, senior market analyst at OANDA.

President Trump, still being treated for COVID-19, ended talks on Tuesday with Democrats on an economic aid package for the United States, the world’s biggest oil consumer, with the U.S. presidential election only weeks away.

“President Trump’s decision to end fiscal

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Oil prices on track for weekly fall on worries over COVID-19 impact on crude demand

Oil futures lost ground Friday, leaving both major benchmarks on track for their third weekly decline in four weeks as worries about the demand outlook grow in response to rising COVID-19 cases.

“Investors have become more cautious this week in general…as recent increases in coronavirus cases has increased questions over what a second wave could mean for the world economy and resource demand,” Colin Cieszynski, chief market strategist at SIA Wealth Management, told MarketWatch.

A rebound in the U.S. dollar this week has also weighed on dollar-denominated oil prices, he said. The ICE U.S. Dollar Index
DXY,
+0.34%

 was up around 1.9% for the week.

West Texas Intermediate crude for November delivery
CL.1,
-0.54%

 
CLX20,
-0.54%

 fell 40 cents, or 1%, to $39.91 a barrel on the New York Mercantile Exchange following a similar rise a day earlier.

Front-month November Brent
BRNX20,
-0.38%

 fell 26 cents, or 0.6%, to $41.68

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