Oil prices still haven’t hit rock bottom, says International Energy Agency, even after Brent crude falls below $60 per barrel
Global oil demand will slow in 2016, the International Energy Agency (IEA) has predicted in its latest monthly report.
The world’s leading energy forecaster warned rebalancing of supply and demand in oil market has “yet to run its course”.
Oil prices have fallen 60 per cent in the past year, with US benchmark WTI trading around $53 per barrel and global benchmark Brent crude recently falling below $60 per barrel for the first time since April.
The IEA predicted global demand for oil will fall to 1.2m barrels a day in 2016, down from 1.4m today.
World oil demand growth appears to have peaked in the first quarter of 2015 at 1.8m barrels per day and will continue to ease throughout the rest of this year and into next as temporary support fades.