2020.12.1109:07:00UTC+00Oil Prices Edge Lower On US Stimulus Uncertainty

Oil prices edged lower on Friday as near-term U.S. fiscal stimulus appeared unlikely and British Prime Minister Boris Johnson said there was "a strong possibility" Britain and the EU would fail to strike a new deal.

Benchmark Brent crude dipped 0.4 percent to $50.07 after gaining nearly 3 percent on Thursday amid hopes for an increase in crude demand due to the rollout of coronavirus vaccines. U.S. oil futures were down 0.2 percent at $46.70.

While U.S. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi cited progress over a new Covid-19 relief package, Republican Senate Majority Leader Mitch McConnell's staff were skeptical compromises could be made.

Pelosi suggested that the negotiations could stretch on after Christmas if necessary.

Meanwhile, after months-long talks and with just three weeks to go until the end of the transition period, British Prime Minister Boris Johnson said there is now a "strong possibility" the U.K. will leave the EU without a deal.

There is a limit to what the Bank of England can do to avoid disruption or volatility in financial markets after Britain's Brexit transition period with the European Union ends on Dec. 31, Governor Andrew Bailey said at a news conference following the publication of the BoE's Financial Stability Report.

On the Covid-19 front, Sanofi and GlaxoSmithKline said clinical trials of their Covid-19 vaccine showed an insufficient immune response in older people, delaying advanced trials of their experimental Covid-19 shot.