WTI Crude Oil Weakens as Markets Fear Rise in Coronavirus Cases
Arslan Butt • 1 min read
Early on Thursday, WTI crude oil prices have slid lower as traders worry about the continued rise in the number of coronavirus cases globally and how this could impact economic recovery as countries ease lockdown measures. At the time of writing, WTI crude oil is trading at around $38.29 per barrel.
WTI crude oil has also turned bearish following the release of the EIA report during the previous session, which revealed a sudden rise in US crude stockpiles over the past week. According to the EIA, crude inventories in the US grew by 5.7 million barrels over the previous week to touch an all-time high of 538.1 million barrels.
US oil prices experienced additional downward pressure after the latest FOMC meeting in which the Fed alluded to keeping its monetary policy loose through this year and into the next to aid the recovery of the US economy. The Fed also forecast that the US economy was expected to contract by 6.5 this year while unemployment rate could touch 9.3% by the year end.
Meanwhile, the number of people being affected by coronavirus continues to climb higher, which is a sign of worry as lockdown restrictions are removed across several countries worldwide. Worries of a potential second wave of coronavirus is also keeping crude oil prices under pressure as markets fear the possibility of more lockdowns if the pandemic continues to spread.