IEA sees oil market oversupplied well into 2016

Oil prices are continuing to fall. Brent is down to $49 per barrel this morning, while WTI has hit $46.5 per barrel. The International Energy Agency's latest estimates for the oil market have been weighing on prices. 

Although the IEA again raised its estimate of global oil demand this year and now expects an increase of 1.8 million barrels per day, it envisages demand growth of only 1.2 million barrels per day next year. As a result, the IEA downwardly revised the average annual call on OPEC in 2016 to 31.1 million barrels per day. 

The IEA sees the oil market as being oversupplied well into next year, additional oil from Iran possibly playing its part in this once sanctions are lifted. 

"The oversupply could be reduced more quickly, as non-OPEC supply will probably decrease more steeply than previously anticipated", says Commerzbank.