Oil prices fell again on Wednesday morning in Asia. This is due to an increase in U.S. crude oil supply. Furthermore, travel restrictions or lockdowns to slow the spread of the new COVID-19 virus are suppressing fuel demand which is now already weak.

Brent crude futures reportedly fell 1.06% to $49.30. This means the commodity slipped below the $50 figure. WTI futures also fell 1.68% to $46.23. Both look still difficult to ride in the market. Elsewhere, oil stocks have risen in recent times.

Tuesday's data from the American Petroleum Institute showed an increase of 2.7 million barrels in U.S. crude oil supplies. That is for the week ending December 18. The increase was larger than the expected withdrawal of 3.25 million barrels prepared. 

The US Allies Await Oil Prices

Investors are now awaiting crude oil supply data from the U.S. Energy Information Administration. Reportedly, the data was released yesterday. In addition to the release, the mutation of the new coronavirus also worries the market. Many currency pairs are affected by this.

It is possible that the B.1.1.7 strain of the COVID-19 virus first recorded in the UK is already spreading to neighboring countries such as France, Germany, and Switzerland. That is why; more than 40 countries have closed their borders to the UK for the next few days.

The Philippines is also taking the same step. The Asian country banned all UK flights from 24 December. Gazprom Neft CEO Alexander Dyukov gave his prediction that global demand for oil liquids would return as it was in pre-pandemic times maybe sometimes in 2022.

Increasing Corona Virus Cases and Their Effects

This sudden act of panic by governments around the world indicates a wider risk of lockdown. Furthermore, travel restrictions can also be set until the New Year. It is so clear that it will slow the recovery in global oil demand and weigh on commodity prices.

This was conveyed by an analyst in the field of energy research Raymond James & Associates Inc. Pavel Molchanov told Bloomberg some time ago. In the other place, more than 18.2 million cases of coronavirus have been recorded in America until December 23.

According to data from Johns Hopkins University, currently, about twice as many Americans are hospitalized for being positively infected with COVID-19. The number is higher than at any point in the pandemic, with doses of the COVID-19 vaccine for the general public still a few months away.

Meanwhile, the Senate finally passed a bill governing the latest U.S. stimulus measures on Monday. This means that the moment was taken after its ratification in the House of Representatives the previous day. However, President Donald Trump has said he cannot sign the bill.

Oil Prices Are Still Steady

It is known that the ratification of the bill on the U.S. stimulus is now awaiting Donald Trump's signature in order to soon become law. Trump said on Tuesday that the bill should be amended to increase the number of stimulus checks. 

Meanwhile, oil remained steady on Wednesday after earlier losses triggered by an unexpected rise in crude commodity inventories in the US. Then, President Donald Trump's stance on shaking up the market by threatening not to sign the COVID-19 aid bill is also one factor.

As it is known that the bill has been long-awaited by market participants and the public because it is considered able to help the economic sector in the midst of a pandemic that still exists today. It is so important.

Previously, the manufacture had encountered obstacles after some parties had difficulty getting a consensus. A lot of parties are now hoping that Donald Trump will change his decision and sign the bill as soon as possible.