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Oil prices to remain low - IEA

Oil market

The International Energy Agency, IEA, has warned oil prices could fall further in 2016.

In its forecast report released on Tuesday, the IEA said “it is very hard to see how oil prices can rise significantly in the short term”.

The oil prices are expected to remain low as supply continues to surpass demand in 2016.

In the first quarter of 2016, Oil stock is expected to grow by 2 million barrels per day and 1.5 million barrels in the coming months. The IEA added that the “lower oil prices may heighten the risk of political disturbances in oil-export-dependent economy countries with low buffers, but can also offer an incentive to maximise output and stimulate production growth”.