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

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."