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Gulf Today Report

Oil prices declined above 1% on Wednesday following an unexpected increase in US crude oil inventories and President Donald Trump threatening to not sign the stimulus bill.

Brent crude futures fell 71 cents, or 1.4%, to $49.37 a barrel at 06:46 GMT while US West Texas Intermediate (WTI) crude futures slid 67 cents, or 1.4%, to $46.35 a barrel.

The uncertainty of recovery in fuel demand hangs over the market as the 70% transmissible coronavirus strain spreads in Britain, leading to most of the world closing its borders to the country. 

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"This is the holiday period when people go out and that prompts fuel demand. But now, a majority of flights have been cancelled to and from the UK, so this is going to impact oil demand (overall)," said Ravindra Rao, vice president, commodities at Kotak Securities.

On Tuesday, the American Petroleum Institute reported an increase in the US crude inventories. It rose by 2.7 million barrels.

Trump threatened not to sign the $892 billion relief bill approved on Monday, he said Congress should increase the amount of the check.