Oil prices fall 5% to $28 despite historic cut deal

Oil prices fell 5 percent to around $28 a barrel on Wednesday, pressured by reports suggesting persistent oversupply and collapsing demand due to global coronavirus 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 $1.49, or 5%, to $28.11 a barrel , giving up an earlier gain. U.S. West Texas Intermediate crude slid 51 cents, or 2.5%, to $19.60.

The Organization of the Petroleum Exporting Countries, along with Russia and other producing countries – a grouping known as OPEC+ – has partnered with other oil-pumping nations like the United States for a record supply-cutting agreement.