Oil prices were little changed in early trade on Thursday after U.S. lawmakers postponed a vote on a $2.2 trillion coronavirus relief package in hopes of reaching a deal that is bipartisan while rising infections fuelled demand fears.
U.S. West Texas Intermediate (WTI) crude (CLc1) futures slipped 1 cent to $40.21 a barrel at 0146 GMT, after jumping 2.4% on Wednesday.
Brent(LCOc1 that is crude futures rose 3 cents to $42.33 a barrel, after falling 0.2% overnight.
U.S. Treasury Secretary Steven Mnuchin said speaks with House Speaker Nancy Pelosi made progress on COVID-19 relief legislation. Oil prices were little changed in early trade on Thursday
WTI jumped on Wednesday after data from the U.S. Energy Information Administration revealed crude stocks and distillate inventories, which include diesel and jet fuel, fell more than expected in the week that is latest.
But demand worries remain. Concerns are growing in New York, where infection that is COVID-19 continued to climb. The pandemic has infected more than 7.2 million and killed significantly more than 206,000 people in the United States.
Growing supply from the business of the Petroleum Exporting Countries (OPEC) also weighed on industry, with production having increased by 160,000 barrels per time in September from August as some installments that are libyan and Iran’s exports grew, a Reuters study found.
ANZ Research noted reports of Russia increasing production beyond its quota in the grouping of OPEC and its allies, called OPEC+, which has worked since April to control supply that is crude.
“Increasing supplies from OPEC+ would be risking their rebalancing effort while the market is still grappling with weak need,” ANZ Research said.
In a Reuters survey, 40 analysts and economists now see international need contracting by 8 million-9.8 million bpd (barrels each day) this year, slightly less bleak than the 8 million-10 million bpd consensus month that is final.
However they trimmed their outlook for oil prices this year, with the average of forecasts for benchmark Brent crude at $42.48 a barrel for 2020 down from an average forecast of $42.75 thirty days that is last.
The 2020 U.S. crude price perspective was at $38.70 per barrel versus $38.82 predicted in August.