Oil Resumes Plunge After IEA Warns That Demand Is in ‘Free Fall’
- IEA chief says consumption may drop as much as 20 million b/d
- DOE withdraws offer for SPR purchases amid funding uncertainty
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Oil resumed its decline after the head of the International Energy Agency warned global demand was in ‘free fall’ as coronavirus lockdowns wreak havoc on consumption while major producers pump more.
Futures in New York tumbled 7.7% in New York, dropping for the first time this week, after IEA executive director Fatih Birol said demand could drop as much as 20 million barrels a day. The gloomy outlook exacerbated investor pessimism driven by a U.S. decision to rescind a crude-buying offer after failing to win funding from Congress.