Stimulus Halt Causes Oil Prices To Fall – 6 October, 2020

With the U.S. Presidential Election only weeks away, President Trump decided to end fiscal stimulus talks with Democrats which caused oil prices to fall. U.S. West Texas intermediate crude oil futures fell 2% or 81 cents to $39.86 per barrel. Brent crude futures fell 1.6% or 70 cents to $41,95 per barrel. Data from the American Petroleum Institute also showed a 951,000 barrel rise last week, adding to the U.S. stockpile and placing pressure on prices. Offshore production of some energy companies also had to be shut down in preparation for Hurricane Delta headed towards the Gulf of Mexico which produces 17% of U.S. crude output.