WTI Crude Oil Weakens as Demand Concerns Pressure Markets
On Wednesday, WTI crude oil continues to tree weaker for a second consecutive session over continued worries among traders about the ongoing coronavirus pandemic and its impact on oil demand. At the time of writing, WTI crude oil is trading at around $38.82 per barrel.
WTI crude oil lost over 3% of its value in the previous session as the number of cases continue to rise all over the world, raising fears that economic recovery could be further delayed. When economies are in recession, the demand for oil also weakens, keeping prices under pressure lately.
With international travel having contracted significantly due to the pandemic-driven restrictions, oil demand has taken a major hit. It is likely to remain depressed with countries imposing fresh restrictions to contain the spread of the pandemic.
WTI crude oil prices remained unaffected by the release of the API report on Tuesday which revealed a drawdown in crude stockpiles instead of a rise as expected by economists. However, gasoline inventories in the US climbed higher, souring the sentiment in oil markets further.
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