Can the WTI Oil Price Overcome Covid Fears? Last week’s positive oil market sentiment is evaporating quickly as this week started off with WTI crude prices sinking 1.32%. Thus, the WTI oil price dropped down to $45.65 a barrel. Last week OPEC+ agreed to increase oil output by 500,000 barrels per day, which combined with the optimism surrounding the new coronavirus vaccine caused crude oil to rally.
However, the positivity was short-lived and the increasing Covid-19 cases around the world put a damper on the WTI crude oil price gains. And in truth, all that did was remind us that neither the vaccine, nor OPEC’s decision will have an effect on oil demand and therefore on crude oil trading. WTI crude oil trading had already started to suffer the impact of diminishing demand even before the pandemic.
And of course we all saw what the global lockdowns that followed did to the crude oil price in March. So it’s evident that WTI is not in the clear, and the short-term crude oil forecast for next year does seem quite bleak.
Furthermore, the extended restrictions and reinforced lockdowns around the world aren’t helping WTI oil either. If anything, they are a very clear sign that demand won’t be recovering soon, and with it neither will the WTI oil price. With that in mind, it’s more than likely we will see a further decline in the WTI oil price chart this month. And if there’s no dramatic change in the situation in the meantime, then WTI crude oil will be under immense pressure throughout the first half of 2021.
Watch our full WTI crude oil analysis to see where this current tendency may lead us in the weeks to come and how the WTI oil price today will continue to develop. And drop us a line in the comment section below with your thoughts on our WTI crude oil forecast.
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