WTI Crude Oil Falls Further Over Weak Demand Worries
Arslan Butt • 1 min read
WTI crude oil futures continue to decline into Wednesday as fears about the impact of the coronavirus pandemic on economic recovery and oil demand returned to the spotlight once again. At the time of writing, WTI crude oil is trading at around $36.29 per barrel.
Even after several weeks of lockdown restrictions which have since been lifted, most countries worldwide continue to see an uptick in the number of infections. Cases are climbing higher across the worst affected countries, including the US, India, Britain and Spain, heightening fears that economic recovery could be delayed further.
Crude oil prices have been under pressure over fears that the downtown caused by the pandemic could last much longer and prevent oil demand from recovering anytime soon, even after lifting of lockdown measures. Despite deep supply cuts by leading oil producers worldwide, with demand failing to improve, the outlook for oil prices remains bearish for the near future.
Even as countries report a resurgence in cases after reopening their economies, data releases indicate prolonged weakness in oil demand and economic activity. Crude oil prices are expected to remain weak until economic data worldwide reveals a rebound in growth, which could potentially increase the demand for oil.