Oil declines as world glut seen extending into 2017

The price of oil dropped yesterday as the International Energy Agency (IEA) changed its view on global over-supply, seeing a glut persisting into 2017.

The oil surplus is set to last longer than previously predicted, as demand growth slumps and output proves resilient, the agency said.

“The IEA said the supply overhang will persist longer than previously expected,” said Gene McGillian, a senior analyst and broker at Tradition Energy in Connecticut.