The Brent price has been inched up to $45 per barrel today morning after having hit a 2½-month low of $43.6 on Friday. The International Energy Agency (IEA) observes the oil market is over supplied.
"In 2016, the IEA expects demand to grow by 1.2 million barrels per day and non-OPEC oil production to decline by 0.6 million barrels per day, the US leading the way. This will increase the call on OPEC to 31.3 million barrels per day. The call on OPEC even looks set to reach 32 million barrels per day in the second half of 2016 and would therefore marginally exceed the current level of OPEC output. Having said that, stocks are likely to continue to rise until then, thus precluding any noticeable price rises for the time being", notes Commerzbank.
