WTI Crude Oil Dips as Markets Worry About COVID-19 Economic Impact
WTI crude oil prices are trading weaker at the beginning of a brand new week, as markets focus on the economic fallout from the coronavirus
WTI crude oil prices are trading weaker at the beginning of a brand new week, as markets focus on the economic fallout from the coronavirus pandemic driving oversupply even as demand remains anemic. At the time of writing, WTI crude oil is trading at around $25.63 per barrel.
The past couple of weeks had helped crude oil prices recover from the crash over rising expectations of demand picking up as economies look to reopen around the world. In the wake of the ongoing crisis, leading oil producers worldwide have cut production but demand remains weaker despite these supply cuts, raising worries about a possible supply glut.
The risk sentiment in markets has also been impacted over concerns about a second wave of coronavirus cases in China and South Korea, even an shutdown restrictions are being used and economic activity restarting in these regions. This has sent crude oil prices weaker early on Monday as traders fear that the pandemic can continue to wreak havoc on the economy and oil demand.
So far, estimates peg the reduction in global oil demand at around 30% due to the pandemic-led shutdowns across the world. Meanwhile, oil producers are unable to turn off supply at a corresponding pace, causing storage facilities to nearly fill up, which has also been weighing on oil markets lately.
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