Oil sinks as market doubts OPEC supply cuts will be enough - Reuters

Oil sinks as market doubts OPEC supply cuts will be enough - Reuters:

Oil prices tumbled on Thursday on doubts that a deal between OPEC and allies to make a record oil supply cut would be enough to offset the collapse in global fuel demand caused by the coronavirus pandemic.

The Organization of the Petroleum Exporting Countries and its allies including Russia, a group known as OPEC+, agreed to cut output by 10 million barrels per day from May, the group said in a statement.

Before the coronavirus outbreak hit global transportation and economic activity, 10 million bpd was about 10% of global supply.

OPEC+ expects other producers including the United States to cut another 5 million bpd. But Washington has not offered to participate, and even if it did, the combined reduction in supply would be about half the 30% worldwide fall in demand

Brent LCOc1 futures fell $1.36, or 4.1%, to settle at $31.48 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 dropped $2.33, or 9.3%, to settle at $22.76.