On Tuesday, WTI crude oil prices are climbing higher, recovering losses from the previous session as markets continue to focus on hopes of economic recovery as countries emerge from lockdowns the world over. At the time of writing, WTI crude oil is trading at around $38.54 per barrel.

Economists expect WTI crude oil to soon test the key level of $40 amid rising optimism that reopening of economies around the world would aid in recovery. As economic activity resumes across several countries, the demand for oil is expected to rise in the coming weeks and months, helping boost prices in the near future.

Crude oil prices received additional support from news over the weekend about OPEC+ countries agreeing to extend crude production curbs until the end of July. However, on Monday, the sentiment was dented a little when Saudi Arabia confirmed that Kuwait and the UAE were not going to continue the additional 1.8 million bpd over and above the agreed 9.7 million bpd cuts into July.

Crude oil prices have also been facing downward pressure over worries about Libya restarting oil production in its key oilfields after several months of blockades. An increase in oil production could once again destabilize oil markets that have been reeling under weakening demand in the wake of the coronavirus crisis.