Oil Down Despite US Senate Passes $2 Trillion Package

Crude oil prices were down to open Thursday on a lower note despite the U.S. Senate has passed a $2 trillion aid package to mitigate against the adverse economic impact of coronavirus, which continues to keep global oil demand low.

International benchmark Brent crude was trading at $27.21 per barrel at 0615 GMT for a 0.66% decline after ending Wednesday at $27.39 a barrel with a 0.88% gain.

American benchmark West Texas Intermediate was at $25.15 a barrel at the same time for a 1.39% decrease after closing the previous session at $24.49 per barrel with a 2% jump.

Crude prices closed the previous session with gains after the U.S. Senate passed late Wednesday a $2 trillion aid package, the largest stimulus legislation in the country's history, with a 96-0 vote.

The bill, which investors hope it would stimulate the economy, will be voted in the U.S. House of Representatives on Friday. If it passes President Donald Trump said he will sign it.

The stimulus legislation could put the world's largest economy back on track and increase its crude consumption, and then could have an impact on global oil demand, which remained low due to coronavirus.

Since emerging in Wuhan, China last December, the virus is known as COVID-19 has spread to at least 172 countries and regions, taking more than 21,200 lives.

As most of the European countries and the U.S. are under lockdown, global oil consumption has remained weak, creating downward pressure on crude prices.

On the supply side, Saudi Arabia and Russia preparing to boost their oil production levels at the beginning of April will also increase the glut of supply in the global oil market to put prices at risk. -