The report emphasized that rapid slide in oil prices over the last nine months will not last much longer. However, it added that the rebound will be limited and won’t feature prices at the heights of the last three years.
IEA’s price assumptions mark a steep downgrade from its last year’s report, when prices of $100 a barrel in 2015 and 2016 were expected.
Oil prices have slumped more than 50% since June amid a surge in oil supply led by U.S. shale oil production and sluggish demand.
This has already taken a toll on the oil industry, with project delays, layoffs and cancelled spending.
The economic impact of lower prices on the Organization of the Petroleum Exporting Countries (OPEC) has been severe.
OPEC said Monday that demand for its oil will increase to 29.2 million barrels a day this year. That is still below the group’s output quota of 30 million barrels a day, but a significant upward revision from previous forecasts.
More about:
