Oil Tumbles As Trump Ends Stimulus Talks
Oil prices tumbled on Wednesday as U.S. stimulus hopes faded and data showed a larger-than-expected build in crude oil supplies.
Benchmark Brent crude fell 70 cents, or 1.6 percent, to $41.95 a barrel, while U.S. crude futures were down 80 cents, or 2 percent, at $39.86.
Coronavirus relief talks came to an abrupt halt Tuesday as U.S. President Donald Trump ordered Treasury Secretary Steve Mnuchin to stop negotiating with House Speaker Nancy Pelosi, D-Calif, saying talks won’t resume until after the election.
Trump’s tweets came after Federal Reserve Chairman Jerome Powell warned of ongoing risks to the economy if authorities did too little to support the economic rebound.
As growth worries resurface, markets are taking some comfort from new poll numbers showing Democratic nominee Joe Biden’s widening lead over President Trump as well as Trump’s tweets seeming to promise backing for individual pieces of fiscal stimulus.
Meanwhile, the American Petroleum Institute reported a build in U.S. oil inventories of 951,000 barrels for the week ending October 2, compared with the 831,000-barrel draw expected.
Investors now await data from the U.S. Energy Information Administration later in the day for further direction.