WTI crude oil prices are strengthening early on Friday and look all set to post gains for the second consecutive week over hopes that oil demand could be improving as countries emerge out of lockdowns around the world. At the time of writing, WTI crude oil is trading at around $42.27 per barrel.

Earlier this week, WTI crude oil received a boost from a greater than expected decline in US crude inventories, signalling a pick-up in demand in the US – the world’s largest energy consumer. However, there is still an air of caution amid oil traders over the possibility of a resurgence in infections prompting governments to reimpose lockdowns.

As the number of cases continues to climb higher the world over, analysts expect oil demand to stay weak for an extended period of time. Recently, the IEA as well as the OPEC revised their oil demand forecasts lower for this year, especially as a result of reduced international air travel in the wake of the pandemic.

While this sentiment weighs on crude oil prices and keeps gains in check, additional pressure has come from OPEC+’s decision to forego the deeper production cuts starting this month. At a time when oil demand is yet to pick up, an increase in crude supply raises concerns of a glut in markets.