WTI recovers modestly from weekly lows, steadies near mid-$37s

• Crude oil prices are falling for fourth straight day on Thursday.
• EIA data on Wednesday showed US crude inventories hit all-time highs.
• Surging number of confirmed coronavirus cases weigh on demand outlook.

After climbing to its highest level since early March at $41.60 at the start of the week, the barrel of West Texas Intermediate (WTI) reversed its direction.

US inventories and coronavirus fears drag WTI lower

The WTI closed the last two days in the negative territory, lost nearly 6% during that period and extended its slide on Thursday. As of writing, WTI was trading at $37.50, a little above the weekly low that it set at $37,15, down 1.4% on the day.

The surging number of confirmed coronavirus infections globally revived concerns over a dismal energy demand outlook and weighed on crude oil prices. Moreover, the weekly data published by the US Energy Information Administration (EIA) on Wednesday revealed that crude oil inventories increased by 1.4 million barrels and hit record levels for the third straight week.

Although a modest rebound witnessed in major European equity indexes on Thursday point to recovering market sentiment, investors are likely to remain cautious while assessing the impact of new COVID-19 cases on growth and demand outlook.

Technical levels to watch for