At the beginning of a brand new trading week, WTI crude oil prices are ticking higher and look all set to post a gain for the fourth consecutive month. At the time of writing, WTI crude oil is trading at around $43.12 per barrel.
While the previous week saw some volatility in oil prices as a result of the storms in the Gulf of Mexico region, WTI crude oil slipped after the storms passed without impacting oil production facilities as severely as feared. On Monday, however, oil is edging higher as a result of weakness in the US dollar which makes it more attractive for holders of other currencies to buy the commodity.
However, crude oil continues to face pressure due to the ongoing coronavirus pandemic amid fears that demand could take longer to pick up as most countries continue to see a rise in the number of cases. Meanwhile, an improvement in oil prices has encouraged US producers to increase drilling activity, which could further increase supply even as demand fails to improve.
Hedge funds and money managers have reduced their bullish bets on WTI crude oil to a four month low as a result of continued weakness in demand. Worries about a glut in oil markets even as global economic recovery gets delayed has reduced optimism among traders.