Oversupply may saturate oil market, says IEA

Oversupply may submerge the overall crude oil market until at least in the latter part of 2016 due to increasing supply and unusual warm weather. Based on the International Energy Agency's monthly report, such factors could push oil prices lower than its present 12-year troughs. It also warned of more price declines ahead. Also, the IEA said oil supply worldwide could surpass demand by 1.5 million barrels per day in the first half of the year, with Iran adding 600,000 bpd by mid-2016 and other nations keeping current output. Brent futures LCOc1, sliding below $30 a barrel, have hit its lowest level since late 2003 after the Organization of the Petroleum Exporting Countries decided not to reduce output to stop the price decline amid oversupply.


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