WTI Crude Oil Dips as Biden’s Stimulus Plans Could Take Longer
Arslan Butt • 1 min read
WTI crude oil prices are trading weaker early on Tuesday, reversing gains from the previous session, as the Biden administration’s plans for more stimulus ran into obstacles even as the number of fresh coronavirus cases keeps increasing. At the time of writing, WTI crude oil is trading at around $52.50 per barrel.
On Monday, crude oil had gained almost 1% over optimism that the US could announce more stimulus measures to help strengthen the economy. The vaccine rollout has also lent support to oil prices in recent sessions; however, optimism surrounding the COVID-19 vaccine has been offset by worries as some parts of the world continue to see a spike in cases.
Crude oil has come under pressure after countries across Europe and Asia have reimposed lockdowns and restrictions to curb the spread of the pandemic. Lockdowns hurt economic activity, forcing businesses and consumers to reduce their dependency on energy and weakening oil demand as a result.
In addition, WTI crude oil has also turned bearish as officials from the Biden administration try hard to convince Republican lawmakers on the need for additional stimulus initiatives. President Biden stated that negotiations with the Congress on his proposed $1.9 trillion package could take a couple of weeks, denting the prospects of immediate relief.