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Oil market falls too big to offset with output cuts, IEA warns

Published 15/04/2020, 09:02
© Reuters.

LONDON, April 15 (Reuters) - 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
warned no output cut by producers could fully offset the
near-term falls facing the market.
The IEA forecast a 9.3 million bpd drop in demand for 2020
despite what it called a "solid start" by producers following a
record deal to curb supply in response to the coronavirus
pandemic.
"By lowering the peak of the supply overhang and flattening
the curve of the build-up in stocks, they help a complex system
absorb the worst of this crisis," the Paris-based IEA said in
its monthly report.
"There is no feasible agreement that could cut supply by
enough to offset such near-term demand losses. However, the past
week's achievements are a solid start."

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