WTI Crude Oil Set for Weekly Gain of Around 3%

Early on Friday, WTI crude oil prices are climbing higher over reassurances from leading governments and central banks on more stimulus measures to protect economies from the impact of the coronavirus pandemic. At the time of writing, WTI crude oil is trading at around $22.92 per barrel.

So far, WTI crude oil has gained around 3% of its value over rising hopes for more funds being injected into global markets to offset the economic impact of the pandemic. However, since the beginning of the year, crude oil prices are down by around 60% over escalating concerns about weakening demand in the wake of coronavirus worldwide.

The largest energy consumer, the US, is expected to have surged past China and Italy according to latest estimates to have the highest number of infections from the virus. Even though the country has gone into lockdown mode and the government is soon expected to roll out a massive fiscal stimulus package, it is not likely to improve oil demand, which could keep prices under pressure.

For now, however, oil markets have shifted their focus from worrying about weakening demand to the rise of stimulus efforts around the world to support economies. Such measures could help speed up recovery once the crisis wanes and boost oil demand faster once the situation surrounding coronavirus eases.