Global market in 2016 drowning in oil

IEA and Opec see a grim 2016 for oil markets due to oversupply

The International Energy Agency (IEA) and Opec issued bleak outlooks for global oil markets this year, reflecting new macroeconomic headwinds which may slowing demand growth even while non-Opec production begins to tail off. But while the IEA thinks the market “could drown in oversupply”, Opec reckons 2016 will see some balance restored. Thanks to cuts in supply outside the group, Opec sees the call on its crude rising sharply this year. The IEA says global crude demand will rise by 1.2m b/d this year, reaching 95.7m b/d. This is down from the 1.7m b/d rise in 2015. Opec, only slightly more bullish, sees consumption rising in 2016 by 1.26m b/d, to 94.17m b/d.Slower demand-growth expectations