Early on Tuesday, WTI crude oil prices have registered a sharp increase by over $1 despite the reigning volatility in global markets over rising coronavirus concerns weighing on global economic growth and oil demand. At the time of writing, WTI crude oil is trading at around $29.71 per barrel.

The rise in the crude oil prices was mainly attributed to traders seeking bargains and covering their short positions. Other countries are expected to follow the US in filling up their strategic oil reserves to offset some of the weakness in oil demand. However, this would only drive a slight and momentary uptick in demand.’

The outlook for crude oil continues to remain grim in the wake of rising number of coronavirus cases worldwide. Several countries have imposed travel restrictions and lockdown measures that are further weakening the demand for oil, keeping prices under pressure even as Saudi Arabia gets ready to flood the markets with cheaper supply.

Saudi Aramco, the world’s largest oil company, commented that it would be comfortable with crude oil prices hovering around the $30/barrel mark. However, the steep decline in oil prices is likely to hurt other oil producing countries, especially Russia and the US.