WTI Crude Oil Weakens For Fourth Straight Session
Arslan Butt • 1 min read
WTI crude oil prices continue to weaken into the fourth consecutive session early on Tuesday as markets focus on weak oil demand in the wake of the resurgence in coronavirus cases across several parts of the world. At the time of writing, WTI crude oil is trading at around $40.73 per barrel.
A rise in the number of fresh cases across Europe, Britain and North America have forced governments to reissue restrictions, heightening concerns that oil demand could weaken further. Expectations for a greater dip in oil demand is weighing on the sentiment in markets and exerting downward pressure on crude oil prices.
So far, global oil demand had improved to around 92% of its pre-pandemic levels. However, fresh lockdowns could once again send demand lower and keep prices weak in the coming weeks.
Crude oil is also trading bearish over worries on the supply side, with Libya restarting oil production after months of blockade. Even though OPEC and allies have agreed to curtail crude production by 7.7 million bpd until the end of this year and by 5.8 million bpd starting January 2021, Libya’s oil production falls outside these limits and is raising fears of oversupply.