Oil prices to fall, oversupply to rise further: IEA
Data from the report showed that the oil surplus could reach 1.5 million bpd in the first six months of 2016 while the IEA commented that Iran’s return to the market will offset the effects of the declines in non-OPEC oil supplies. Iran plans to increase its exports by 500,000 barrels per day (bpd) over the short term. Currently, OPEC’s production is up 1.06 million bpd compared with the same period of last year.
Global inventories are expected to reach 285 million barrels in 2016 as the IEA maintains its global oil demand growth expectations for the year at 1.2 million bpd, down from 1.8 million bpd in 2015. The agency also cut its forecasts for demand for OPEC crude for 2016 by 300,000 bpd to 31.7 million bpd.
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