WTI Crude Oil Weakens as Markets Fear Rise in Coronavirus Cases

WTI crude oil prices have slid lower as traders worry about the continued rise in the number of coronavirus cases globally and how this

WTI Crude Oil Weakens as Markets Fear Rise in Coronavirus Cases

Early on Thursday, WTI crude oil prices have slid lower as traders worry about the continued rise in the number of coronavirus cases globally and how this could impact economic recovery as countries ease lockdown measures. At the time of writing, WTI crude oil is trading at around $38.29 per barrel.

WTI crude oil has also turned bearish following the release of the EIA report during the previous session, which revealed a sudden rise in US crude stockpiles over the past week. According to the EIA, crude inventories in the US grew by 5.7 million barrels over the previous week to touch an all-time high of 538.1 million barrels.

US oil prices experienced additional downward pressure after the latest FOMC meeting in which the Fed alluded to keeping its monetary policy loose through this year and into the next to aid the recovery of the US economy. The Fed also forecast that the US economy was expected to contract by 6.5 this year while unemployment rate could touch 9.3% by the year end.

Meanwhile, the number of people being affected by coronavirus continues to climb higher, which is a sign of worry as lockdown restrictions are removed across several countries worldwide. Worries of a potential second wave of coronavirus is also keeping crude oil prices under pressure as markets fear the possibility of more lockdowns if the pandemic continues to spread.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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