IEA predicts further fall in crude prices

The I-E-A warned that the oil market could drown in over-supply unless something changes. It also cites that the lifting of sanctions against Iran that leads to a half-a-million barrel production boost could further drag down crude prices. It says Iran’s extra production is likely to create more competition on pricing as the quality of Iran’s crude is similar to that of Saudi Arabia, Iraq and Russia. It adds that if Iran is able to move quickly to offer its oil under attractive terms, there may be more PRICING IN to come. Oil prices have hit 12-year lows of below 29 dollars per barrel. Global demand is estimated to stand at nearly 96 million barrels per day, which means supply will exceed demand by one million barrels each day.