Oil slips below $45 on demand concerns

Oil slips below $45 on demand concerns

Shafaq News/ Oil dipped below $45 a barrel, on Friday, on worries that a demand recovery would slow due to a resurgence of coronavirus cases, although a pledge from OPEC member Iraq to cut output further in August gave some support, Reuters reported. 

The resurgence of infections remains a key issue for the market and demand outlook. Tallies show cases in the United States are rising in a number of states.

Meanwhile, India reported a record daily jump in infections.

Brent crude LCOc1 fell 56 cents, or 1.2%, to $44.53 by 1345 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 slipped 44 cents, or 1.1%, to $41.51.

Both benchmarks are set for weekly gains of more than 2%.

Traders were also watching talks in the United States over the next COVID-19 stimulus package. Democratic leaders in the US Congress and top aides to President Donald Trump failed to make substantial progress on Thursday.

Oil has recovered from lows reached in April, when Brent slipped below $16, a 21-year low, thanks in part to a record deal on supply cuts by OPEC and its allies.

Furthermore, Saudi Arabia’s energy minister and his Iraqi counterpart stressed, this week, their commitment to the deal. Iraq has been a laggard in fully meeting its pledge.

Shafaq Live
Shafaq Live
Radio radio icon