The IEA made further fall of oil after entering the Iran market


Moscow. On 19 January. The international energy Agency assumes a further fall in oil prices in connection with access to the Iranian market and the slowdown in demand for raw materials, reads the monthly review of the Agency.

The IEA believes that expected this year reduction in oil production outside OPEC by 600 thousand barrels per day (b/d) will be completely replaced Iranian volumes by the middle of 2016. Provided that other members of the cartel will keep production volumes, a surplus of oil on the world market could rise to 1.5 million b/d. It can lower the price of oil is still below the current levels, the survey says.

On Monday, Brent fell to its lowest in 12 years at $28 per barrel after the lifting of sanctions with Iran.

The IEA reminds us that growth in world oil demand this year will be below the level of 2015. If last year the growth of demand has been at record levels since the beginning of the century (+1.7 million b/d), but this year it will grow by 1.2 million b/d (to 95.7 million b/d).

We should not expect that the fall in oil prices will stimulate consumption – economic growth projections in developing countries (Brazil, Russia, China) remain pessimistic.

Oil production of OPEC considering joining the cartel Indonesia, in December decreased by 90 thousand b/d and amounted to 32,28 million b/d. This is still above the projected demand for OPEC oil in 2016 (to 31.7 million b/d). In addition, in the first quarter of Iran can throw into the market an additional 300 thousand b/d, says IEA.