Oil traders prepare for next big price drop as warm winter dents demand and Iran joins global market

Oil traders are preparing for another downward turn in prices by March 2016, market data suggests, as what is expected to be an unusually warm winter dents demand just as Iran’s resurgent crude exports hit global markets as sanctions end.

Crude futures have already lost around 60% of their value since mid-2014 as supply exceeds demand by roughly 0.7 million to 2.5 million barrels per day to create a glut that analysts say will last well into 2016.

Goldman Sachs said yesterday that there was a substantial risk of a “sharp leg lower” in oil prices.