Early on Tuesday, WTI crude oil prices have steadied after the steep losses experienced over the past few sessions amid rising concerns about weakness in demand due to the recent spike in coronavirus cases. At the time of writing, WTI crude oil is trading at around $38.76 per barrel.

However, the overall sentiment remains bearish as the focus continues to be on demand concerns as parts of the US and Europe witness a sharp increase in fresh infections, heightening worries that more restrictions could be imposed once again. With the onset of winter, cases could climb higher, forcing governments to reimpose curfews and similar measures to contain the spread of the pandemic, which would further weaken the demand for oil even before it had the chance to return to pre-pandemic levels.

Crude oil is also trading under pressure lately due to uncertainties about the next round of fiscal stimulus measures in the US. Despite officials maintaining that progress is being made in discussions, there is still no clarity on whether the coronavirus relief package would roll out before the presidential elections next week.

For now, however, the decline has stemmed as a result of an upcoming storm in the Gulf of Mexico region, which has forced oil companies to shut down their offshore oil rigs. A possible reduction in supply in the US is lending some support to oil prices.