Oil little changed as falling demand offsets hopes of U.S. aid package

Oil little changed as falling demand offsets hopes of U.S. aid package

NEW YORK (Reuters) - Oil prices rose modestly on Tuesday, but settled off the day's highs as the coronavirus pandemic's heavy toll on demand offset hopes for a forthcoming $2 trillion U.S. economic relief package.. The unexpected price war between Saudi Arabia and Russia has unleashed a flood of supply while the pandemic is on track to cut fuel demand by at least 10% worldwide.. The price of oil has halved in 2020, hit by the demand shock caused by the pandemic and efforts to contain it, and removal of supply limits by the Organization of the Petroleum Exporting Countries and other producers, including Russia, when a deal by the so-called OPEC+ fell apart in early March.. "The extreme imbalance between supply and demand due to the travel restrictions has only just began to unfold in the physical markets, and the true impact will be felt in the coming weeks," said Rystad Energy's head of oil markets, Bjornar Tonhaugen, in a note..