On Tuesday, WTI crude oil prices are trading bearish as worries mount about the impact of the spike in cases across Europe and the US on oil demand. At the time of writing, WTI crude oil is trading at around $39.70 per barrel.

During the previous session, crude oil had gained around 8% of its value, buoyed by reports of Pfizer’s vaccine being over 90% effective against COVID-19. This was the highest daily gain seen in oil prices in over five months, over expectations that a possible vaccine rollout could drive economic recovery and improve oil demand.

Estimates reveal that the latest round of lockdowns implemented across parts of Europe can further dent oil demand this year. Markets are back to focusing on weakness in demand after the initial optimism surrounding positive developments towards a vaccine as it could take several months for a successful vaccine to rollout and combat the pandemic.

Later today, WTI crude oil prices can also see movement on the release of the API report. Economists expect a decline of 1.3 million barrels in US crude inventories over the previous week.