WTI crude oil has started Friday on an extremely bearish note, with prices having fallen by almost 1% as the number of coronavirus cases continue to rise, increasing fears that there could be more restrictions imposed around the world. At the time of writing, WTI crude oil is trading at around $38.28 per barrel.
During the previous session as well, WTI crude oil had lost nearly 4% of its value over weak demand concerns even as crude supply by leading oil producing nations climbs higher. So far this week, US oil prices are down by almost 5% and look set to post a weekly loss.
Even though OPEC and its allies agreed to curtail crude production to offset the weakness in demand, recent news reports suggest that production increased by 160k bpd MoM during September. With demand failing to pick up even as countries ease lockdown measures, the extra supply is likely to drive a glut in markets and keep prices under pressure.
After ending the several months of blockade, Libya restarted oil production at a faster than expected pace and exports from the country are also on the rise. So far, crude output from Libya has already touched 270k bpd.