Despite positive news on the stimulus front, crude oil prices drifted lower on Monday as rising coronavirus cases and tighter restrictions on travel in several places raised concerns about outlook for energy demand.
Oil prices rebounded after a weak start but retreated subsequently as demand concerns weighed.
West Texas Intermediate Crude oil futures for February ended down $0.61 or about 1.3% at $47.62 a barrel.
Brent crude futures settled at $50.86 a barrel today, netting a loss of $0.43 or about 0.8%.
On Sunday, U.S. President Donald Trump signed legislation for $900 billion in coronavirus economic aid and $1.4 trillion in government spending, providing support for millions of Americans and averting a government shutdown. He had earlier threatened to block the package, calling the $900 billion pandemic relief a “disgrace.”
“I am signing this bill to restore unemployment benefits, stop evictions, provide rental assistance, add money for PPP, return our airline workers back to work, add substantially more money for vaccine distribution, and much more,” Mr. Trump said in a statement.
Traders were also looking ahead to the upcoming meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies. The group is expected to discuss tapering oil output cuts. As of now, the group is set to boost output by 500,000 barrels per day from January.
The material has been provided by InstaForex Company – www.instaforex.com