Oil fell below $20 a barrel on Wednesday, clinging to the lowest level since 2002, amid a record collapse in U.S. fuel demand and the biggest ever weekly build in domestic crude supplies.
Futures in New York fell as much as 4.5% and global benchmark Brent tumbled 8.2%. American gasoline consumption dropped to the lowest level on record while crude supplies ballooned by almost 20 million barrels, according the Energy Information Administration.
While Saudi Arabia and other Middle East producers have pledged to cut supply starting next month, they continue to flood the market in April. Meanwhile, U.S. oil production has declined only marginally.