On Tuesday, both US and UK crude futures’ prices ended the day broadly lower as US lawmakers were wrangling over another set of trillion-dollar stimulus package, while worries over a rise in global pandemic outbreak had been denting demand outlook.
In factuality, the foundering in crude oil futures’ prices on Tuesday was almost entirely goaded by a rattling battle in the Capitol Hill over a new pandemic stimulus proposal, while a new aid package unravelled by the US Republicans on Monday has been whacked out in the US Congress less than a week before at least 32 million Americans would lose an additional $600 per week in pandemic unemployment benefits.
Nonetheless, US Treasury’s Mnuchin was quoted saying over the weekend that the White House was preparing a stimulus package which would proffer a dwarfed, but continued pay checks for the laid-off Americans at least until the year-end, however, the package has been facing off tough deterrents from both Democrats and some Republicans as well, which in effect had poured fresh scorns over investors’ optimism for riskier assets.
Washington stimulus concern stabbing market morale
Citing statistics, on Tuesday’s commodity market closure, UK crude futures’ prices fell by 0.40 per cent to $43.22 per barrel, while the US West Texas Intermediate crude oil futures’ prices were pummelled 1.4 per cent to $41.04 a barrel, however, the Brent and US WTI crude oil futures’ prices have been on track for reporting their fourth and third straight month of gains respectively.
Meanwhile, adding that the longer the stimulus talks would drag on, the more it would hinder market sentiment, a partner at Again Capital LLC in NY, John Kilduff said on Tuesday, “There’s concern with the stimulus out of Washington, which is critical to the oil complex and to supporting demand, especially for gasoline.
” Aside from that, data released on Tuesday had also revealed that the US Consumer Confidence had ebbed off on July amid steady rise in pandemic cases, which had also bolstered investors’ belief of a baleful crude oil demand in a near-term outlook.