WTI Crude Oil Gains Over Fresh Storm in Gulf of Mexico, Demand Concerns Persist
At the beginning of a fresh trading week, WTI crude oil prices are exhibiting signs of mixed trading amid worries of a new tropical storm off the Gulf of Mexico causing oil rigs in the region to shut down even as worries about weak demand reign in the markets. At the time of writing, WTI crude oil is trading at around $37.58 per barrel.
After declining for the second consecutive week, WTI oil prices are supported over concerns that oil supply from the US could be hampered by the shutting of oil rigs due to Tropical Storm Sally. This is the second storm in the region this month that has driven oil companies to halt production.
However, demand concerns continue to dominate the sentiment among oil traders with demand for crude oil failing to recover even after lockdowns were lifted. In addition, US refiners are shutting down for maintenance, which is expected to further reduce oil demand in the near future.
WTI crude oil prices came under more pressure after Libyan commander Khalifa Haftar agreed to end the oil blockade that has lasted several months. This could drive greater supply into oil markets soon, even as demand remains soft due to the ongoing coronavirus pandemic.
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