The International Energy Agency says no amount of output cuts can offset the falls in the market
London — On Wednesday, the International Energy Agency forecast a 29-million barrel per day dive in April oil demand to levels not seen in 25 years and warned that no output cut by producers could fully offset the near-term falls facing the market.
“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. Ahead of that, however, April could prove the worst month ever for the industry as production is set to increase while demand tumbles amid economic lockdowns around the world, IEA executive director Fatih Birol said.
Now, in addition to planned supply cuts, some nations are expected to boost buying for strategic reserves.
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