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Oil stable on U.S. stimulus hopes but demand fears linger
Oct 1, 2020
MELBOURNE/SINGAPORE (Reuters) - Oil prices were steady on Thursday as renewed hopes for U.S. fiscal stimulus provided support but concerns over rising infections hampering fuel demand capped gains.
FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, U.S., November 22, 2019. REUTERS/Angus Mordant/File Photo
U.S. West Texas Intermediate (WTI) crude futures eased 1 cent to $40.21 a barrel at 0532 GMT , after jumping 2.4% on Wednesday.
Brent crude futures climbed 2 cents to $42.32 a barrel, after falling 0.2% overnight.
The Trump administration has proposed a new stimulus package to House Democrats worth over $1.5 trillion.
“Even if Trump does sign it must still be approved and originated by the House. Still, it appears progress is being made with the Republicans at $1.5 trillion, and the Democrats at $2.2 trillion,” said Jeffrey Halley, senior market analyst for Asia Pacific of OANDA.
“Now that we have a market spread, the odds of a compromise have increased dramatically and this will be positive for markets.”
Earlier, U.S. Treasury Secretary Steven Mnuchin said talks with House Speaker Nancy Pelosi made progress on COVID-19 relief legislation, and the House of Representatives postponed a vote on a $2.2 trillion Democratic coronavirus plan to allow more time for a bipartisan deal to come together.
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