Oil market could drown in oversupply in 2016, says IEA
by Sean Farrell from on (#115J7)
International Energy Agency predicts increase in supply after lifting of sanctions against Iran, pushing prices down further
The world could find itself drowning in oil this year and prices could fall further as new Iranian output cancels out production cuts elsewhere, according to the International Energy Agency.
An increase in supply and weakening demand growth will ensure there is an overabundance of oil until late 2016 at the earliest, the IEA said in its January report. It said the result would be the third successive year when supply exceeded demand by 1m barrels a day, and the system would struggle to cope.
Related: IMF cuts global growth forecasts
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