US oil futures dip over 7 pct amid oversupply concerns

NEW YORK - Oil prices dropped noticeably Sunday night with the US benchmark down more than 7 percent amid persistent oversupply concerns.

The West Texas Intermediate for June delivery slipped 7.2 percent to 15.72 US dollars a barrel, while Brent crude for June delivery slid 0.8 percent.

The oil markets have been under pressure recently amid coronavirus-tied demand shock and a supply glut.

Oil futures on Friday gained for a third straight session, but US prices posted a record weekly loss of 32.3 percent based on the June contract. It is the biggest weekly percentage loss on record, according to Dow Jones Market Data. June Brent declined 23.6 percent for the week ending Friday.

Global oil demand is expected to fall by a record 9.3 million barrels per day year-on-year in 2020, the International Energy Agency (IEA) warned in its closely-watched monthly report.

The IEA said that demand in April is estimated to be 29 million barrels per day lower than a year ago, down to a level last seen in 1995, due to the COVID-19 pandemic as containment measures have brought mobility almost to a halt.