Oil falls 4% towards $28 on oversupply concerns - Reuters

Oil falls 4% towards $28 on oversupply concerns - Reuters:

Oil fell 4% towards $28 a barrel on Wednesday, pressured by reports of persistent oversupply and collapsing demand due to global coronavirus-related lockdowns and a lack of coordinated oil purchases for strategic storage.

The International Energy Agency (IEA) on Wednesday forecast a 29 million barrel per day (bpd) dive in April oil demand to levels not seen in 25 years and said no output cut could fully offset the near-term falls facing the market.

Brent crude LCOc1 fell $1.18, or 4%, to $28.42 a barrel at 1134 GMT, giving up earlier gains. U.S. West Texas Intermediate crude CLc1 slid 43 cents, or 2.1%, to $19.68.

“There is no feasible agreement that could cut supply by enough to offset such near-term demand losses,” the IEA said in its monthly report. “However, the past week’s achievements are a solid start.”