Oil falls amid concerns over US economic stimulus package

Oil prices edged lower on Tuesday, giving up some of the gains in the previous session, amid developments on the approval of the new US economic stimulus and as coronavirus cases continue to rise across the world.

Despite US President Joe Biden’s decision to approve a new fiscal stimulus package worth $1.9 trillion to support the economy during the coronavirus pandemic, the Republican lawmakers need to be convinced of the need to provide more stimulus.

Meanwhile, the number of coronavirus cases globally approached the 100 million mark, as figure currently exceeds 99.7 million.

Barclays Bank raised its estimates of oil prices for this year by $2, forecasting Brent crude to reach $55 per barrel (bbl) and WTI at $52/bbl, Reuters reported.

In terms of trading, Brent crude was trading down 0.8% at 55.45/bbl, at 9 am Makkah time.

WTI crude fell 0.8% to $52.37/bbl.

Meanwhile, in India, crude oil imports in December increased to their highest level in more than two years as the easing of coronavirus restrictions boosted economic activity, Reuters reported.

The American Petroleum Institute is due to release preliminary US stockpile estimates for last week later today, while the Energy Information Administration will release official data tomorrow.