WTI crude oil is starting the fresh trading week on a bearish note, with prices sliding lower as markets once again turn their focus towards the latest spike in fresh coronavirus infections around the world and its possible economic impact. At the time of writing, WTIcrude oil is trading at around $51.92 per barrel.

In the past few sessions, crude oil had rallied higher, supported by Saudi Arabia’s announcement of tightening oil supply further even as China’s oil imports registered as increase through the past year. Meanwhile, the rollout of the COVID-19 vaccine across some countries had also increased hopes among traders for gradual recovery in oil demand.

However, with several countries reporting and uptick in new coronavirus cases, causing governments to impose more lockdowns and restrictions, markets are worried about oil demand weakening again. China, the world’s second largest energy consumer, has already put over 28 million people in lockdown in an effort to contain fresh outbreaks across parts of the country.

Crude oil prices are facing additional downward pressure as the number of oil and natural gas rigs in operation across the US continue to rise for the eighth straight week, increasing the possibility of more supply. The recent strengthening in oil prices have driven US drillers to increase crude production, even though oil demand is yet to pick up.