Early on Friday, WTI crude oil prices are trading somewhat bullish, strengthening after having fallen to the lowest level in three weeks during the previous session following the release of US GDP data. At the time of writing, WTI crude oil is trading at around $40.05 per barrel.

US WTI crude oil is all set to post gains for the fourth consecutive month after having fallen to historic lows during April as most countries worldwide went into lockdown to contain the spread of the coronavirus pandemic. However, the threat of a second wave of infections still weighs on the sentiment among traders, keeping crude oil prices under pressure.

Crude oil prices are also facing downward pressure over recent reports about OPEC and its allies planning to increase oil production by 1.5 million barrels from August, even as global demand for oil is yet to pick up. This raises the risk of oversupply once again in the oil markets, which could send prices lower in the coming weeks.

Crude oil’s demand is expected to remain weak in the near future as the coronavirus pandemic rages on all over the world, prompting countries to impose lockdown measures again. Economists polled by Reuters also paint a gloomy picture for the global economy, forecasting a deeper contraction as a result of continued rise in the number of infections and lockdowns.