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Oil Slips Below $45 on Increasing Demand Doubts and Rising Supply

Oil Slips Below $45 on Increasing Demand Doubts and Rising SupplyOil Slips Below $45 on Increasing Demand Doubts and Rising Supply

Oil slipped further below $45 a barrel on Friday, giving up this week’s gains, under pressure from doubts about demand recovery due to the coronavirus pandemic and rising supply.
Brent crude was 29 cents, or 0.7%, lower at $44.67, heading for a flat week. US West Texas Intermediate slipped 25 cents, or 0.6%, to $41.99, Reuters reported.
Prices had been bolstered this week by US government data showing crude oil, gasoline and distillate inventories all fell last week as refiners ramped up production and demand for oil products rose.
Oil has recovered from lows touched in April, when WTI briefly turned negative. Still, a rise in the number of coronavirus infections has limited gains. India reported another record daily rise in cases on Thursday.
OPEC and allies including Russia, a group known as OPEC+, have cut output since May by around 10% of pre-pandemic global demand to support the market. The deal calls for an increase in output this month as demand recovers.
An OPEC+ panel meets next week to review the market and is not expected to tweak the agreement.
 

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