WTI Crude Oil Slips Lower as Markets Worry About Rise in Coronavirus Cases

WTI crude oil prices have weakened for the first time this week early on Wednesday as traders focus on the rise in the number of coronavirus

WTI Crude Oil Slips Lower as Markets Worry About Rise in Coronavirus Cases

WTI crude oil prices have weakened for the first time this week early on Wednesday as traders focus on the rise in the number of coronavirus infections in the US and the rest of the world, and how this would impact oil demand in the near future. At the time of writing, WTI crude oil is trading at around $41.57 per barrel.

A continued increase in the number of cases and death toll have prompted several states in the US to call off or restrain their plans to reopen their economies after the lockdowns. With lockdowns set to continue in some parts if the country and other parts of the world, it is unlikely that oil demand could recover anytime soon, which is driving prices lower.

WTI crude oil prices failed to show much reaction to an unexpected decline in US crude inventories over the previous week. According to the API report which released during the previous session, crude stockpiles fell by 8.6 million barrels to 520 million barrels. Analysts had forecast a decline by 3 million barrels instead.

Other encouraging news like better than expected factory activity data from the US and other parts of the world also failed to support crude oil prices. While growth in manufacturing activity could spur oil demand, markets focus on worries of resurgence in cases which could drive countries to reimpose lockdown measures, denting oil demand all over again.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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