SINGAPORE (Reuters) – Oil halted some of its losses from earlier Monday after U.S. President Donald Trump signed a $ 2.3 trillion aid package and coronavirus consumption but worries of near-term demand term on market pressure.
Brent crude futures fell 25 cents, or 0.5%, to $ 51.04 a barrel at 0700 GMT, after falling as much as 1.5% to $ 50.53 a barrel earlier in the session.
U.S. West Texas Intermediate (WTI) crude futures slipped 19 cents, or 0.4%, to $ 48.04 a barrel.
“With President Trump signing the bill, oil has quickly recovered most of what he lost today, although both Brent and WTI remain to some extent. big in the red, ”said Jeffrey Halley, OANDA’s senior market analyst.
The U.S. presidential motion was proposed because it would restore unemployment benefits to millions of Americans and prevent the closure of a federal government.
“With trade volumes thinning over the holiday week, it is likely that oil will remain under the radar in the coming days. That said, the signing of a US stimulus bill, with the potential for greater size, should put a floor below oil prices in a shorter week, ”said Halley.
But a new infectious version of the coronavirus, first seen in Britain and now found in several other countries, has reversed movement restriction, raising concerns about overcoming demand.
The oil market would pick up a puppy from the virus situation as it develops in the coming days, market watchers said.
“With the world now launching major vaccine programs, it may be the fate of the oil market as soon as vaccines can close the gap in the race to introduce the new variant. , ”Said Stephen Innes, Axi’s chief global market strategist. nota.
“Any problem of a pandemic, whether vaccinated or linked to lockout, could be exacerbated by increased demand for oil in January on less strong bases. especially if the virus situation worsens than expected after the holidays, eventually hand tools manufacturers. ”
Reciting with Koustav Samanta; Edited by Robert Birsel