WTI crude oil is trading somewhat steady early on Friday, supported by a weakness in the US dollar even as worries about higher supply and tepid demand through the coronavirus pandemic continue to plague the markets. At the time of writing, WTI crude oil is trading at around $59.65 per barrel.

Crude oil has seen higher demand amid a decline in the value of the US dollar against other leading currencies. This has made oil cheaper to purchase for holders of other currencies, hence improving its demand momentarily and sending its prices higher for now.

Despite the current uptick in prices, crude oil is set to end this week in the red, posting a weekly loss of around 2-3% over OPEC and its allies’ decision to ease the severe production cuts starting next month. As per the latest OPEC+ meeting held last week, leading oil producing nations of the world are planning to increase crude supply gradually in global markets by as much as 2 million bpd by the month of July.

While economists foresee an improvement in oil demand by H2 of this year after the pandemic is brought under control through widespread COVID-19 vaccine rollouts, the outlook in the near term seems uncertain amid rising cases across Europe and parts of Asia. The third wave of the pandemic has forced several European nations to bring back lockdowns and restrictions while India and Brazil are also grappling with a sudden spike in infections.