Oil fell to less than $ 45 a barrel today, Friday, due to fears of a slowdown in the recovery of fuel demand amid the return of Corona virus infections, but a pledge from Iraq by OPEC member to increase production cuts in August gave some support.
The resurgence of infections continues to be a major problem for markets and demand outlook. Statistics indicate that the incidence of infection in the United States is increasing in a number of states.Meanwhile, India recorded an unprecedented daily jump in infections.
By 13:45 GMT, Brent crude was down 56 cents, or 1.2%, to $ 44.53 a barrel. U.S. West Texas Intermediate crude fell 44 cents, or 1.1%, to $ 41.51.
And both benchmarks are in the process of weekly gains of about 2%.
Traders are also watching talks in the United States about the next stimulus package to counter the repercussions of the Coronavirus. Democratic Party leaders in the U.S. Congress and top aides to President Donald Trump failed to make tangible progress on Thursday.
Oil recovered from dreaded levels reached in April when Brent plunged to less than $ 16, a 21-year low, due, among other things, to an unprecedented production cut agreement concluded by OPEC and its allies.
The Saudi Energy Minister and his Iraqi counterpart this week stressed their commitment to the agreement. And Iraq is behind in the full implementation of what is binding on it.