Prices for peterolum fell on Wednesday, pressured by reports suggesting oversupply and collapsing demand due to global coronavirus-related lockdowns.
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 fell $2.04, or 6.8%, to $27.59 U.S. a barrel, giving up an earlier gain. U.S. West Texas Intermediate crude slid 45 cents, or 2.2%, to $19.6 U.S. Earlier in the session WTI dropped to its lowest level since Feb. 2002.
Data from the U.S. Energy Information Administration for the week ending April 10 showed inventory increased by 19.2 million barrels. Analysts had been expecting a rise of 12.02 million barrels.
The Organization of the Petroleum Exporting Countries (OPEC), along with Russia and other producer - a grouping known as OPEC+ - has partnered with other oil-pumping nations, such as the United States, in the record global supply pact.
Officials and sources from OPEC+ states indicated the IEA, the energy watchdog for the world’s most industrialised nations, could announce purchases of oil for storage of up to several million barrels to buoy the deal.
But as of Wednesday, no such IEA purchases had materialized.
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