On Thursday, WTI crude oil prices seem to be posting slight recovery after the 5% fall during the previous session over worries about a second wave of coronavirus and its impact on oil demand. At the time of writing, WTI crude oil is trading at around $37.84 per barrel.

WTI crude oil fell by $2.36 a barrel in the previous session after the release of the government EIA crude inventories report from the US. According to the EIA, crude stockpiles in the US rose by 1.4 million barrels over the past week, with inventories touching record high levels for the third consecutive week.

While this raised concerns that oil demand was yet to pick up even as the economy reopens, some analysts have clarified that the surge in inventories was driven by higher imports of Saudi oil booked back in March when prices had crashed. The shipments from Saudi are expected to ease soon, which would help stabilise the oil markets in the US and support prices.

Crude oil prices are also trading under pressure lately over rising fears about a possible second wave of the pandemic, as more countries report a spike in the number of infections after reopening their economies. Cases are on the rise especially in South America and South Asia, heightening worries that lockdown measures can be reintroduced, which would once again dent the demand for oil.

Fuel demand is expected to remain considerably weaker even as countries emerge out of lockdowns, especially as international travel could remain subdued until the pandemic is completely brought under control. Australian airline Qantas Airways expects international travel to remain weak at least for the next year, as a result of which it has grounded 100 planes of its fleet and laid off around 20% of its staff.