- WTI is down 67c to $47.30/Bbl, and Brent is down 63c to $50.28/Bbl
- WTI retreated from its ten-month high on Monday, falling $1.36/Bbl for its worst drop since early November
- Congress passed a stimulus bill as coronavirus infections continue to mount in the U.S.
- New coronavirus mutation causes several countries to lockdown borders and limits travel
- $900 Billion COVID-19 relief bill advances to the president's desk following months of turbulent negotiations
- Key provisions will include:
- $284 billion for forgivable Paycheck Protection Program loans
- Enhanced jobless benefits of $300/week and direct payments of up to $600 per person
- $45 billion to support transportation services, including airports, Amtrak, and airline employees
- AEGIS notes that the stimulus will likely boost short-term demand and help strengthen consumer spending as rising COVID-19 infections continue to stymie demand.
- Key provisions will include:
- London COVID-19 variant prompts several countries to impose travel restrictions and lockdown borders
- The variant has replaced other versions of the virus at a rapid pace, with the virus mutations increase the transmission rate. Current estimates suggest the new strain is up to 70% more contagious than its parent strain
- India, Pakistan, Russia, Jordan, Hong Kong have suspended travel from Britain along with a host of other countries in the EU. Additionally, Saudi Arabia, Kuwait, and Oman have shut off their borders completely to mitigate the spread of the new strain