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Brent crude <LCOc1> futures lost 74 cents, or 1.7%, to $41.91 a
barrel by 1009 GMT and U.S. West Texas Intermediate (WTI) crude
<CLc1> declined by 89 cents, or 2.2%, to $39.78.
"Trump pulling out of negotiations generates a lot of
uncertainty about the economy ... we also didn't get a
constructive set of data in terms of oil consumption," said
Harry Tchilinguirian, head of commodities research at BNP
Paribas.
President Trump, still being treated for COVID-19, ended talks
on Tuesday with Democrats on an economic aid package for the
United States, the world's biggest oil consumer, only weeks away
from the U.S. presidential election.
Crude prices were also hit by American Petroleum Institute data
showing U.S. oil stockpiles rose by 951,000 barrels last week.
<API/S>
"(This was) not exactly what the recovery doctor ordered as the
oil market was already tanking from a two-week high after
President Trump quashed hope for a pre-election stimulus deal,"
said Stephen Innes, chief market strategist, at online brokerage
AxiCorp.
Losses were capped by restrictions on the supply side.
Energy companies secured offshore platforms and evacuated
workers on Tuesday, some for the sixth time this year, as
Hurricane Delta threatened U.S. oil output in the Gulf of Mexico
The storm has shut 29.2% of offshore oil production in the Gulf,
which accounts for 17% of total U.S. crude output.
In Norway, the Lederne labour union said on Tuesday that it will
expand oil strike from Oct. 10 unless a wage deal can be
reached. Six offshore oil and gas fields shut down on Monday
because of the strike, cutting Norway's output capacity by 8%.
(Reporting by Julia Payne; Editing by David Goodman)
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