Crude could hit $40 a barrel by April

NEW YORK (MarketWatch) - Crude-oil prices could fall to $40 per barrel by April as demand falls and production becomes more cost-effective, Deutsche Bank said in a report released Wednesday. Prices will fall on “a huge overhang of new, more efficient refining capacity addition into an already-oversupplied market,” the investment bank said. The Organization of the Petroleum Exporting Countries potentially needs to cut production by 2.5 million barrels a day to reduce supplies, the bank said, but members of the cartel also have incentives not to cut output because their revenues are falling from lower oil prices.