On Thursday, WTI crude oil prices are trading somewhat steady, close to the highest level touched in five months, but remain under pressure as a result of increasing coronavirus cases worldwide and how this could impact global oil demand. At the time of writing, WTI crude oil is trading at around $42.14 per barrel.

Over the previous session, WTI crude oil rallied more than 1% higher following the release of the EIA report which revealed a larger than expected decline in US crude inventories. According to the EIA, crude stockpiles fell by 7.4 million barrels over the past week, while economists had forecast a decline of only 3.2 million barrels for the period.

The sentiment among oil traders remains cautious due to the continued rise in the number of cases and death toll, raising fears of more lockdowns that could prevent a recovery in the global economy as well as in oil demand. However, crude oil prices enjoy support from a weakness in the US dollar, as crude futures are priced in dollars and benefit from a fall in the dollar’s value.

Oil demand is unlikely to improve anytime soon as most countries worldwide are still reporting infections, and some regions have reimposed lockdown measures to contain the spread of cases. On the other hand, OPEC and allies have increased limits on oil production since the beginning of this month, heightening worries of oversupply in global markets.