IEA: Oil Prices May Resume Downward Spiral — Energy Journal
The International Energy Agency warned crude prices could resume a downward spiral as global demand for oil may slow next year, Benoît Faucon reports. “The bottom of the market may still be ahead,” the agency said in its closely watched monthly oil-market report.
Global demand growth is forecast to slow to 1.2 million barrels a day in 2016, compared with an average 1.4 million barrels a day this year, the IEA says in its first oil-consumption assessment for next year. Prices could feel pressure if Iranian oil returns to the market amid the lifting of sanctions and if the Organization of the Petroleum Exporting Countries continues to pump at high levels. The IEA estimates OPEC crude oil production rose 340,000 barrels a day in June to 31.7 million barrels a day. This is the highest level since April 2012 and 1.7 million barrels a day higher than a production target it agreed to maintain last month.