WTI crude oil prices are weakening early on Thursday, weighed by increasing concerns about fresh lockdowns and restrictions hurting oil demand once again, after the UK and China announced travel restrictions in the wake of a surge in fresh coronavirus cases. At the time of writing, WTI crude oil is trading at around $52.51 per barrel.

The mood in the markets has turned to one of caution, driving WTI crude oil to reverse some of the previous session’s gains, especially as markets worry about China imposing more restrictions. As the world’s second largest energy consumer, fresh lockdowns and travel restrictions across the country are expected to have a bigger impact on oil demand.

Meanwhile, crude oil prices received some support from the release of the EIA report on Wednesday which revealed a decline in US crude inventories. Against economists’ expectations for a build instead, crude stockpiles in the US fell by 9.9 million barrels during the previous week – the sharpest decline seen since July.

However, the optimism around the drawdown in US crude inventories was unable to stem worries about the impact of lockdowns on oil demand. While England has banned non-essential outbound trips and enforced quarantine for inbound visitors, China has also urged its citizens to avoid traveling during the Lunar New Year holidays – the busiest travel period in the country, owing to the spike in cases.