WTI Crude Oil Dips as US Lawmakers Still Discussing Coronavirus Relief

WTI Crude Oil Dips as US Lawmakers Still Discussing Coronavirus Relief

Posted Friday, December 18, 2020 by
Arslan Butt • 1 min read

WTI crude oil prices have slipped slightly lower in early trading on Friday but continue to hold close to the nine month high reached in the previous session, coming under pressure over uncertainties surrounding the coronavirus relief bill even as cases continue to surge in the US. At the time of writing, WTI crude oil is trading at around $48.24 per barrel.

On Thursday, crude oil traded bullish on the back of a weaker dollar amid the improvement in the overall market sentiment. In addition, an improvement in refining demand across Asia and hopes for US lawmakers to come to an agreement on the next round of fiscal stimulus had also supported oil prices.

However, with no decision reached yet and time running out before the government shutdown deadline, there is a sense of caution among oil traders about the coronavirus relief package. The shortage of time could see lawmakers passing a smaller, stopgap spending package instead of the $900 billion proposal currently being negotiated.

The overall sentiment in oil markets and global markets remains optimistic as the US and a few other countries start administering the vaccine to their citizens. Crude oil prices have been strengthening lately in the hope that the vaccine rollout could help contain the pandemic, restart economic recovery and help oil demand rise once again as well.

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