WTI Crude Oil Set to Post Weekly Loss Amid Fears of Second Wave of Coronavirus
Arslan Butt • 1 min read
WTI crude oil prices continue to slide lower early on Friday amid rising fears about a possible second wave of coronavirus with a surge in cases over the past week and how this could impede economic recovery. At the time of writing, WTI crude oil is trading at around $35.63 per barrel.
Over the previous session, WTI crude oil prices fell 8% lower as traders focused on the continued increase in the number of cases worldwide even as countries try to reopen their economies after the lockdown. So far this week, US oil prices are set to lose around 4% of their value, having strengthened earlier in the week over optimism about OPEC+ nations extending the deeper supply cuts into July.
The optimism that was building up about economies reopening around the world that has supported bullishness in crude oil over the past few weeks appears to have faded in the wake of fears about a second wave of the pandemic. In the US alone, cases have crossed 2 million and continue to climb higher.
Meanwhile, a build in crude inventories over the past week lent additional downward pressure on oil prices earlier this week as it highlighted weak demand for oil even as states emerge out of lockdown in the country.