A global oil supply glut will persist through 2016 as demand growth slows from a five-year high and key OPEC producers maintain near-record output, according to the International Energy Agency. Laura Frykberg reports.
Consumers are loving it, and it's likely to last. The International Energy Agency says the world's oil market will remain oversupplied through to next year. Demand is to increase by more than 1.2 million barrels per day. That's 150,000 barrels fewer than its forecast last month. Low prices at the pump, isn't great news for energy exporting nations though.. Oil prices have slipped and OPEC is refusing to cut supply. Secretary General Abdullah Al-Badri explained why on Sunday. THE SECRETARY-GENERAL OF THE OPEC, ABDULLAH AL-BADRI, SAYING: "OPEC believes that this problem (the falling price of crude) has been created by all oil-producing countries, whether inside the OPEC or outside the OPEC. We all participated. Some countries, especially from outside the group, these countries increased its production by about six million barrels per day in the last six years." One of those countries is the United States. Commerzbank's Global Economist Peter Dixon says its output has a wide affect on the world's oil market. (SOUNDBITE) PETER DIXON, UK ECONOMIST AT COMMERZBANK SAYING: "I think over the course of the next few months I would expect this glut to dissipate slightly, partly because we will see a reduction in share production from the United States." Oil prices are now close to half the level they were a year ago. A worrying trend for suppliers, and those hoping for an increase in inflation.