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Oil Prices Mixed Ahead Of EIA Data

Oil prices were trading mixed on Wednesday after rising in the previous two sessions on hopes for U.S. stimulus.

Benchmark Brent crude dropped 0.9 percent to $26.91 a barrel after earlier rising to a high of $28.29. U.S. crude futures were up 0.2 percent at $24.06 a barrel.

Oil prices gave up early gains after U.S. lawmakers approved a massive aid package to support the world's largest economy, reeling under the severe adverse impact of Covid-19.

The United States Senate approved a $2 trillion aid package to stem the economic impact of the coronavirus pandemic on firms and households. The bill is expected to be passed through the Congress later today.

ING revised down its Brent crude price forecast for the second quarter to $20 a barrel from $33, citing the demand shock from Covid-19 and the expected surge in OPEC+ supply from April.

"Demand continues to deteriorate as more countries impose shutdowns and stricter travel restrictions," the bank's analysts said in a note.

Meanwhile, data from industry group the American Petroleum Institute showed on Tuesday that there was a decline of 1.25 million barrels of crude oil held in storage for the week ending on March 20. Expectations were for a surplus of 2.774-million barrel

The weekly report from the Energy Information Administration (EIA) is due later in the day.

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