By December 9, 2015 Read More →

Head of International Energy Agency sees oil price staying low in 2016

International Energy Agency says high supply to blame for oil prices

International Energy Agency

The International Energy Agency says with investment dropping for the second consecutive year, there could be some surprises in oil supply in the future.

PARIS _ The head of the International Energy Agency expects oil prices to remain low next year as demand weakens and supply remains high.

The price of oil fell this week to its lowest since early 2009, when the global economy was deep in crisis. The U.S. benchmark recovered 1.6 per cent at $38.08 on Wednesday.

Fatih Birol, executive director of the IEA, which represents oil-consuming nations, told a news conference on the sidelines of the U.N. climate conference in Paris: “When we look at 2016, I see very few reasons why we can see growth in the prices.”

He warned, however, that investment in production is due to drop for a second consecutive year for the first time in 30 years. He noted that could cause “surprises” in supply in the future.

The Canadian Press

Posted in: Energy Financial

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