WTI Crude Oil Bearish as Markets Focus on Pandemic’s Impact on Oil Demand
Arslan Butt • 1 min read
WTI crude oil is trading bearish on Tuesday, with prices falling as markets continue to focus on the impact of the coronavirus pandemic on global oil demand, especially in the wake of rising infections worldwide. At the time of writing, WTI crude oil is trading at around $40.69 per barrel.
During the previous session, WTI oil had gained around 1.8% of its value, supported by better than expected manufacturing data from Asia, Europe and even the US which raised hopes of economic recovery across the world. Improvement in manufacturing activity globally can increase the demand for oil – the sentiment that drove an uptick in crude oil prices on Monday.
However, the optimism surrounding the rise in manufacturing activity was offset by fears about oversupply in oil markets after OPEC+ decided to ramp up production starting this month. While demand is yet to pick up significantly, any increase in supply can result in a glut in markets, keeping prices under pressure.
WTI crude oil prices are enjoying some support after economists polled by Reuters anticipate crude stockpiles in the US to have decreased over the previous week. According to economists, US crude stockpiles are forecast to have reduced by 3.3 million barrels, but gasoline inventories and distillates are set to rise by 600k and 800k barrels respectively over the past week.