Oil prices were in the red zone on Wednesday after tumbling nearly 10 percent during the previous settlement, as worries over a tumble in fuel consumption continue to have impact on investors’ mood. US light oil managed to pare some early losses.
The International Energy Agency (IEA) reported about a possible 29M bpd demand slump in April to levels last time seen 25 years ago, which would significantly exceed an agreement by top oil-producing countries to lower output by a record 9.7M bpd.
Also, API reading released on Tuesday indicated U.S. crude inventories grew by 13.1M barrels last week, which ended on April 9, far exceeding economists forecasts of an 11.7M barrels growth, and the largest increase since the February of 2017.
International Brent benchmark dipped by 4.53 percent, at $28,26 per barrel, whereas U.S. WTI futures seemed to reverse the movement on Wednesday at 1352 GMT, rising by 0.65 percent, to $20,24 per barrel.