Doubts about a recovery in demand due to the coronavirus pandemic, and increased supply are putting pressure. Oil fell below $ 45 a barrel on Friday, giving up weekly gains.
The global oil supply is on the rise, however, the pessimism about this year’s oil demand growth prospects stems from the weakening outlook for the coming months.
Brent crude LCOc1 was 29 cents, or 0.7%, lower at $44.67 by 0810 GMT, heading for a flat week. U.S. West Texas Intermediate (WTI) CLc1 slipped 25 cents, or 0.6%, to $41.99.
While both contracts continue to consolidate at the upper end of their two-month trading range, they lack the momentum to scene meaningful rallies at this stage.
Prices were supported this week by US government data showing that crude oil, gasoline and distillate stocks fell last week, as refineries increased production and demand for petroleum products increased.
Oil recovered from most lows in April when the WTI briefly turned negative. Still, it has limited gains due to the increase in the number of coronavirus infections. India reported another daily record increase in cases on Thursday.
The OPEC + panel is meeting next week to review the market and is not expected to change the deal for now.
