15.04.202010:35:00UTC+00Oil Prices Fall On Oversupply Fears

Oil prices tumbled on Wednesday, with WTI front month futures dropping to test the $20 level again amid rising oversupply in the global market and worries about plunging demand.

Benchmark Brent crude fell 4.1 percent to $28.38 a barrel, giving up earlier gains. U.S. West Texas Intermediate crude futures were down 3 percent at $19.50.

The International Energy Agency (IEA) on Wednesday forecast a 29 million barrel per day (bpd) dive in April oil demand to a level last seen in 1995 and said no output cut could fully offset the near-term falls facing the market.

"There is no feasible agreement that could cut supply by enough to offset such near-term demand losses," the IEA said in its closely-watched monthly report.

There is an unprecedented demand shock in energy markets as governments around the world impose draconian measures on the lives of billions of people.

Meanwhile, industry group the American Petroleum Institute said on Tuesday that U.S. crude inventories rose by 13.143 million barrels during the period ended on April 10, versus the previous addition of 11.938 million barrels. Official government inventory figures are due later in the day.