FXStreet (Mumbai) – The Paris based International Energy Agency on Friday said the oil prices may fall further as the world remains “massively oversupplied”, before market tightens in 2016 due to slowing non-OPEC output growth.
As per the IEA, “there will be no overall production growth outside the Organization of Petroleum Exporting Countries for the first time since 2008.”
IEA predictions
“Growth in US shale oil supplies will stagnate to mid-2016.“Global oil demand growth will slow in 2016, the agency predicted. The bottom of the market may still be ahead.”
“Non-OPEC supply growth is expected to grind to a halt in 2016, as lower oil prices and spending cuts take a toll.”
“US production growth will slow to 300,000 barrels day next year, from 900,000 a day in 2015. Global oil demand growth will slow next year to 1.2 million barrels a day, reaching 95.2 million a day, down from an expansion of 1.4 million a day this year.”
(Market News Provided by FXstreet)