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UPDATE 4-Oil slips below $45 on demand doubts, rising supply

Fri, 14th Aug 2020 07:15

* OPEC, IEA lower 2020 oil demand forecasts this week

* OPEC+ production rising this month

* No change expected from OPEC+ panel meeting next week
(Updates prices)

By Alex Lawler

LONDON, Aug 14 (Reuters) - 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 novel coronavirus
pandemic and rising supply.

Two prominent forecasters, the International Energy Agency
and the Organization of the Petroleum Exporting Countries,
trimmed their 2020 oil demand forecasts this week.
OPEC and its allies are increasing output this month.

"Pessimism about this year's oil demand growth prospects is
due to the weakening outlook in the coming months," said Stephen
Brennock of oil broker PVM.

"To make matters worse, global oil supply is on the
upswing."

Brent crude was 37 cents, or 0.8%, lower at $44.59
by 0940 GMT, heading for a flat week. U.S. West Texas
Intermediate slipped 41 cents, or 1%, to $41.83.

"Although both contracts continue to consolidate at the
upper end of their two-month trading ranges, they lack the
momentum to stage meaningful rallies at this stage," said
Jeffrey Halley of brokerage OANDA.

Prices had been bolstered this week by U.S. 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.

(Additional reporting by Aaron Sheldrick; Editing by Kirsten
Donovan and Ken Ferris)

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