Early on Friday, WTI crude oil is trading steady but is set to post a weekly loss, weighed down by a resurgence of coronavirus cases prompting countries to impose fresh restrictions which could keep demand under pressure. At the time of writing, WTI crude oil is trading at around $40.54 per barrel.

So far this week, US oil has lost around 2% of its value, despite concerns about a tropical storm offering some support to prices earlier in the week. WTI oil is also set to post a monthly decline for September amid concerns about weakness in demand.

Even as traders continue to focus on weakness in oil demand, the supply side of crude oil is also exerting downward pressure on prices after Libya announced an end to the blockade and plans to restart production. Libya’s decision could flood the markets with more oil at a time when lockdowns and restrictions due to the pandemic are already keeping consumption levels low.

WTI crude oil is also facing pressure from weak economic data releases from the US, especially a rise in unemployment levels across the country. The weak date raises fears of economic recovery getting further delayed in the world’s largest oil consumer, and a weak economy further drives down the demand for oil.