2020.08.0710:48:00UTC+00Oil Slips Below $45 On Demand Fears

Oil dipped below $45 a barrel on Friday amid worries that a resurgence of coronavirus infections and lockdowns will crimp fuel demand.

Benchmark Brent crude dropped 0.7 percent to $44.77 a barrel, with a pledge from OPEC member Iraq to cut oil output further in August helping to limit the downside. U.S. West Texas Intermediate (WTI) crude futures were down 0.8 percent at $41.61.

There are signs of a second wave of coronavirus infections emerging in Europe after data showed an uptick in cases in some countries, including Spain, Belgium and Luxembourg.

Many other European states are seeing an increase in infections, based on a seven-day rolling average compared to the week prior.

Registering over 60,000 cases in 24 hours for the first time, India's Covid-19 tally galloped past 20 lakh today.

Elsewhere, a widely cited University of Washington model predicted that the U.S. death toll may almost double by December if the pandemic's pace doesn't change.

Meanwhile, U.S. stimulus talks remain at an impasse ahead of the deadline, with analysts warning that failure to extend aid would deal a massive blow to the recovering U.S. economy and the fragile oil demand outlook.

On the positive side, Saudi Arabia's energy minister and his Iraqi counterpart stressed their countries' full commitment to an OPEC-plus deal curbing oil production.