Yesterday, WTI crude closed up slightly on hopes of a new round of stimulus measures being discussed in the US. A monetary injection into the economy in the form of another stimulus package would give a jolt to the wavering economy as it oscillates between gains and losses due to coronavirus fears. In the crude market, the economic stimulus may help counteract persistent demand concerns; however these demand concerns seem to be leading the market this morning as crude is down in early trading this morning.
Yesterday, Republicans introduced their new stimulus package proposal of approximately $1 trillion called the HEALS Act. Under the “Heroes Act,” the Democrats had previously proposed a $3 trillion+ stimulus package, but Republicans had rejected it as being too big and too broad. The two sides will now discuss and negotiate terms to come up with a final stimulus package which will likely include a direct stimulus payment to individuals, a decreased federal unemployment benefit, and an expansion of the Payroll Protection Program (PPP) among other stimulus.
In early trading today, crude prices are down. Crude is currently trading at $41.19, a loss of 41 cents.
Fuel prices are down this morning. Diesel is trading at $1.2466, a loss of 0.8 cents. Gasoline is trading at $1.2694, a loss of 0.5 cents.