IEA: Oil glut to persist in 2016

A global oil supply glut will persist through 2016 as demand growth slows from a five-year high and key Organization of the Petroleum Exporting Countries (Opec) members maintain near-record output, the International Energy Agency (IEA) said, even as low prices curb supply outside the producer group.

The IEA, which advises industrialised countries on energy policy, said in a monthly report yesterday that world oil demand will rise by 1.2m barrels per day (bpd) in 2016, down 150,000 bpd from last month’s forecast.

“A projected marked slowdown in demand growth next year and the anticipated arrival of additional Iranian barrels, should international sanctions be eased, are likely to keep the market oversupplied through 2016,” said the IEA said.