Oil falls as U.S. fiscal package faces tough talks - Reuters

Oil falls as U.S. fiscal package faces tough talks - Reuters:

Oil prices fell around 1% on Tuesday, as U.S. lawmakers prepared to wrangle over an economic stimulus package and investors worried about a rise in coronavirus cases worldwide.

Brent crude futures fell 26 cents, or 0.6%, to $43.15 a barrel by 11:20 a.m. EDT (1520 GMT), while U.S. West Texas Intermediate (WTI) crude futures fell 62 cents, or 1.5%, to $40.98 a barrel.

U.S. Republicans unveiled a new coronavirus relief proposal on Monday, four days before millions of Americans lose expanded unemployment benefits. On Tuesday, they faced difficult talks with Democrats on how best to recover from the coronavirus pandemic.

“There’s concern with the stimulus out of Washington, which is critical to the oil complex and to supporting demand, especially for gasoline,” said John Kilduff, partner at Again Capital LLC in New York. Kilduff added that the longer the talks drag out, the more it will weigh on market sentiment.