Oil Market ‘Could Drown in Over-Supply’ in 2016

The price of petrol is likely to drop further in 2016 following the Iran nuclear deal that freed the country of sanctions.

The International Energy Agency has predicted that “unless something changes, the oil market could drown in over-supply” in 2016.

Over supply of crude has already resulted in prices dropping to around the $28 a barrel mark, but it could fall further. The IEA expect that higher production from Iran will lead to the market being drowned in oil, with production set to raise to 500,000 barrels per day now that it’s been freed of sanctions.

That will result in 1.5 million more barrels of oil per day than there is demand for in the first half of the year, leading to bigger crude stockpiles and even lower prices.

Great news for drivers!

Jack Peat

Jack is a business and economics journalist and the founder of The London Economic (TLE). He has contributed articles to VICE, Huffington Post and Independent and is a published author. Jack read History at the University of Wales, Bangor and has a Masters in Journalism from the University of Newcastle-upon-Tyne.