The International Energy Agency (IEA) on Wednesday projected a 29 million barrel per day (bpd) drive in April's oil demand to levels not seen in 25 years and warned no output cut by producers could fully offset the near-term falls facing the market.

Benchmark Brent crude futures LCOc1 fell following the IEA's monthly report, trading down more than 4% or $1.30 to $28.30 per barrel at 1027 GMT.

The IEA forecast a 9.3 million bpd drop in demand for 2020 despite what it termed a "solid start" by producers following a record deal to curb supply in response to the COVID-19 pandemic.

"By lowering the peak of the supply overhang and flattening the curve of the build-up in stocks, they help a complex system absorb the worst of this crisis," the Paris-based IEA said in its monthly report.

"There is no feasible agreement that could cut supply by enough to offset such near-term demand losses. However, the past week's achievements are a solid start."

Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia on Sunday agreed to a record cut in output from May of of 9.7 million bpd, or almost 10% of global supply, to help support prices and curb oversupply.

Before then however, April could prove to be the worst month ever for the industry as productionis set to increase while demand tumbles amid economic lockdowns around the world, according to IEA Executive Director Fatih Birol.