WTI Crude Oil Prices Dip But Set For Weekly Gain
Arslan Butt • 1 min read
WTI crude oil prices have turned bearish early on Friday, continuing to slide since the previous session over increasing fears that a resurgence in the number of coronavirus cases could once again dent oil demand globally. At the time of writing, WTI crude oil is trading at around $41.75 per barrel.
Despite the recent decline, WTI crude oil prices are on track to post a weekly gain of around 4% so far this week, supported by a greater than expected decline in US crude inventories. However, the continued rise in the number of infections dominates the sentiment in oil markets, over fears that it could delay economic recovery and prevent oil demand from rebounding to pre-pandemic levels.
As long as cases continue to climb higher, the possibility of lockdowns being reimposed also remain in focus, which could further reduce the demand for oil and drive weakness in crude oil prices. Oil traders are especially concerned about an increase in the number of cases across the US – the world’s largest oil consumer.
WTI crude oil prices have also come under pressure over the lack of progress on the coronavirus relief bill in the US. The next round of stimulus measures are key to boosting oil demand in the US, where consumption remains strained due to rising unemployment as a result of the pandemic.