Crude oil prices drifted lower on Wednesday as hopes about a new stimulus package faded after U.S. President Donald Trump halted negotiations with Democrats, and data showed an increase in crude stockpiles last week.
West Texas Intermediate Crude oil futures ended down $0.72 or about 1.8% at $39.95 a barrel.
Brent crude futures dropped by about $1.10 or 2.7% to $41.56 a barrel.
WTI Crude oil futures for November ended up $1.45 or about 3.7% at $40.67 a barrel on Tuesday, after having added 5.9% a day earlier.
Brent crude futures moved up $1.40 or about 3.4% to $42.69 a barrel.
Data from Energy Information Administration showed U.S. crude inventories rose by 501,000 barrels in the week ended October 2, nearly twice the expected increase.
However, gasoline and distillate stockpiles dropped last week.
The American Petroleum Institute’s report, released late Tuesday, showed U.S. oil inventories rose by 951,000 barrels in the week ending October 2, as against an expected draw of 831,000 barrels.
Trump had tweeted Tuesday afternoon that he has instructed his administration’s negotiators to stop stimulus discussions with Democrats until after the presidential election, triggering heavy selling in the U.S. market.
Later on Tuesday, Trump indicated he would support individual stimulus measures after calling off negotiations over a broader relief package.
“The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!” Trump tweeted.
He later added, “If I am sent a Stand Alone Bill for Stimulus Checks ($1,200), they will go out to our great people IMMEDIATELY. I am ready to sign right now. Are you listening Nancy?”
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