Oil futures fell Wednesday, with worries about growing supply amid a price war between Saudi Arabia and Russia outweighing support from an agreement on a $2 trillion U.S. economic stimulus program.
West Texas Intermediate crude for May fell 28 cents, or 1.2%, to $23.73 a barrel on the New York Mercantile Exchange. May Brent crude, the global benchmark, was off 96 cents, or 0.9%, at $28.78 a barrel on ICE Europe.
Democratic and Republican lawmakers and the Trump administration reached a deal on a $2 trillion relief package aimed to tide over U.S. citizens and businesses as the economy grinds to a near halt as a result of the global COVID-19 pandemic. Expectations for a deal had helped lift oil futures and sent stocks soaring on Tuesday.
But analysts said the global demand hit from the pandemic coupled with a flood of crude unleashed by a price war between Saudi Arabia and Russia continued to put a cap on oil futures.
Source : Marketwatch