Oil falls as demand worries outweigh U.S. stimulus hopes

Oil prices fell on Tuesday, losing gains from the previous session, as demand worries due to the coronavirus pandemic outweighed hopes for a new U.S. fiscal stimulus.

U.S. West Texas Intermediate crude futures fell 0.8%, or 34 cents, at $40.26 per barrel. The more active Brent crude futures for December delivery slid 0.8%, or 32 cents, at $42.55 per barrel. The November contract due on Wednesday dropped 27 cents to $42.16 per barrel.

Commodities markets rose earlier in the day as Democratic lawmakers revealed a new $2.2 trillion coronavirus relief bill.

Brent and WTI hit their highest levels in August since March on improving fuel demand and major producers’ compliance with agreed supply cuts. However, both benchmarks fell about $3 over demand worries since then. 

Analysts expect U.S. crude oil stocks climbed by 1.4 million barrels in the week ended Sept. 25. Meanwhile, they estimate gasoline stocks dropped by 1.6 million barrels and distillate stockpiles, including diesel and jet fuel, slid by 800,000 barrels.