IEA predicts continued weaknesses in prices as global supply glut continues
The International Energy Agency in their latest monthly oil market report have predicted that current weakness in global oil prices will continue into 2016 as supply continues to outstrip demand. Global oil supply in June surged by 550K b/d m-o-m to a new multi-year high of 96.64M b/d. This was due to higher production from both OPEC and non-OPEC countries. Compared with June 2014, world output is currently 3.1M b/d higher. The gap between global oil supply and demand in 2Q15 as a whole was estimated at 3.26M b/d. Meanwhile, OECD industry oil inventories hit a record 2.9Bn bbls in May, up by 38M bbls m-o-m as product holdings rose.