WTI Crude Oil Prices Slide as More Countries Expected to Enforce Lockdown Measures
Arslan Butt • 1 min read
WTI crude oil is starting the fresh trading week on a bearish note as prices slide lower over worries that the escalating coronavirus crisis could drive more shutdowns in affected countries across the world. At the time of writing, WTI crude oil is trading at around $22.66 per barrel.
As the number of infections continue to climb higher, international travel has clamped down significantly, reducing oil demand. In addition, more countries look set to impose tighter lockdowns across cities and regions in a desperate bid to contain the spread of the virus, further denting the need for oil.
Crude oil prices have been weakening for four consecutive weeks over rising concerns about the impact of the coronavirus pandemic on global oil demand and economic growth. Financial markets have also been trading extremely risk-off in anticipation of a recession in the global economy as the number of cases rise beyond 325,000 and the death toll crosses 14,000.
Meanwhile, oil markets experience additional strain over the price war between Saudi Arabia and Russia, which will cause an oversupply of cheap crude oil starting next month, even as demand is expected to continue declining. Analysts now expect oil prices to fall below $20 per barrel on account of the worsening conditions.