Oil prices fell on Wednesday after US President Donald Trump dashed hopes for a fourth stimulus package to boost the coronavirus-hit economy and on a larger-than-expected increase in US crude inventories.
US West Texas Intermediate (WTI) crude oil futures fell 81 cents, or 2 per cent, to $39.86 a barrel by 0411 GMT while Brent crude futures fell by 70 cents, or 1.6 per cent, to $41.95 a barrel.
“Crude prices got hammered with a 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 US, the world’s biggest oil consumer, with the US presidential election only weeks away.
“President Trump’s decision to