Oil price hits $25 a barrel as US stocks surge

London — Oil slid to $25 a barrel on Wednesday, within sight of its lowest in 18 years, as a report showing a big rise in US inventories and a widening rift within Opec heightened oversupply concerns.

Pledges of higher output from Saudi Arabia and Russia after a supply pact collapsed and a slide in demand due to the coronavirus outbreak have hammered the market.

Global benchmark Brent crude fell 66% in the first three months of 2020 in its biggest ever quarterly loss.

As of 8.30am GMT, Brent was down $1.45, or 5.5%, at $24.90. The price fell to $21.65 on Monday, the lowest since 2002. US West Texas Intermediate crude was down 27c, or 1.3%, at $20.21.

“April will be one of the toughest months in history for oil and this is no April fool’s joke,” said Bjornar Tonhaugen of Rystad Energy.

“The market is oversupplied in April to the tune of 25-million barrels per day. There’s nowhere to hide from this tsunami of oversupply.”

Underlining supply glut fears, the American Petroleum Institute, an industry group, reported US crude inventories rose by 10.5-million barrels, far exceeding forecasts for a four-million barrel increase.