Oil prices dropped again Wednesday despite the recent deal to slash output.
Julian Satterthwaite reports.
Only days ago major oil producers agreed a record cut in production.
That was supposed to lift prices for crude.
But it isn't working out as planned.
Wednesday (April 15) saw international benchmark Brent slide again.
By midday in Europe it was down over 4%, and approaching 28 dollars a barrel.
U.S. crude was down to around 20 dollars.
At that price many of the country's shale oil producers can't make money, and will have to shut off the taps.
The reasons for the downturn aren't hard to discern.
On Wednesday the International Energy Agency released its latest market forecast.
It says demand will slump by 29 million barrels per day in April.
That would take it down to levels not seen in 25 years.
The Agency says no feasible output cut could offset such a slump.
It may try to help by buying millions of barrels to put straight into storage.
But that could just run into another problem.
With consumption so low, the world's oil storage facilities are already brimming.
U.S. oil prices have tumbled to levels not seen since 1999 as demand for crude disappears. Julian Satterthwaite reports.
