WTI Crude Oil Weakens Amid Fresh Spike in Coronavirus Cases

WTI crude oil has started the fresh trading week by losing over 1% of its value, continuing to trade bearish since the previous week, over rising concerns about the second wave of the coronavirus pandemic across the US and Europe. At the time of writing, WTI crude oil is trading at around $39.05 per barrel.

Over the past week, WTI crude oil lost around 2.5% of its value, and in early trading on Monday, it was down by around 1.3% amid the resurgence in new cases. The US and France reported record number of cases, raising concerns that the fresh spike could force governments to bring back more lockdown measures, which could once again impact oil demand.

Crude oil prices are also trading under pressure due to worries about increased supply even amid weakness in demand. After ending several months of blockade, Libya’s National Oil Corp has confirmed that oil production could reach 1 million bpd within the next four weeks – a faster than expected pace of growth.

Oil traders are also concerned about OPEC and its allies ending their deeper supply cuts and increasing production by 2 million bpd starting January 2021. However, with the resurgence in cases, the higher supply from leading oil producing nations could potentially create a glut in markets and weaken crude oil prices further.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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