The Egyptian Ministry of Petroleum and Mineral Resources announced on Thursday a new oil discovery in the shallow waters of Geisum concession south of the Gulf of Suez, with an initial production rate of 2,000 barrels of crude oil per day.

Oil dipped below $45 a barrel, on Friday, on worries that a demand recovery would slow due to a resurgence of coronavirus cases.

Although a pledge from OPEC member, Iraq to cut oil output further in August, provided support.

The resurgence of infections remains a key issue for the market and demand outlook.

Tallies show cases in the United States are rising in a number of states.

India reported on Friday a record daily jump in infections.

Brent crude fell 31 cents, or 0.7 per cent, to $44.78 by 0942 GMT.

United States West Texas Intermediate (WTI) crude slipped 39 cents, or 0.9 per cent, to $41.56.

Traders were also watching talks in the United States over the next coronavirus stimulus package.

Democratic leaders in the United States Congress and top aides to President Donald Trump failed to make substantial progress on Thursday.


“Hopes are still running high for another round of fiscal stimulus,’’ said Stephen Brennock of oil broker PVM.

“Failure to extend aid would deal a massive blow to the recovering United States economy and the fragile oil demand outlook.’’

Brent and WTI are set for weekly gains of almost three per cent.

Prices have recovered from lows reached in April, when Brent slipped below $16, a 21-year low, thanks in part to a record deal on supply cuts by OPEC and its allies.

Saudi Arabia’s energy minister and his Iraqi counterpart stressed their countries’ full commitment to the deal.

Iraq has been a laggard in fully meeting its pledge.

Over the week, a weaker United States dollar helped to support prices by making the commodity more attractive to buyers holding other currencies.

The dollar index, up on Friday, is expected to weaken ahead of United States non-farm payrolls figures later in the day that is forecast to show job creation slowed in July.

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