recent months – and even beginning to rise modestly – because of a
massive oversupply the International Energy Agency (IEA) has said.
exploration, while North Sea oil has come under significant pressure.
(OBR) forecast North Sea oil and gas revenues would fall to below 0.1%
of GDP over the coming decades.
2015, and remains so today,” the IEA said in its monthly report.
is equally clear that the market’s ability to absorb that oversupply is
unlikely to last. Onshore storage space is limited,” it said, adding:
“Something has to give.”
(Opec) have continued to produce the same level of oil in the past year
despite falling oil prices in an attempt to regain market share.
oil production has also soared in recent years, as fracking – or the
process of extracting oil from shale rock by injecting fluids into the
ground – has revolutionised oil production in the country.
production. Many Opec nations are able to tolerate a lower oil price
despite losing money.
month, official figures showed the impact of international sanctions
over Russia’s continued involvement in east Ukraine and the lower oil
prices had led to a 4.9% contraction in the Russian economy in the 12
months to May.
(BPD) in June to 31.7 million barrel as day, a three-year high, led by
record output from Iraq, Saudi Arabia and the United Arab Emirates.
a record high of 10.35 million BPD in June, while Iraq crude oil output
surged 270,000 BPD in June to its highest-ever rate of 4.12 million
oil in economies across the world from Europe to China – the world’s
second-largest consumer of oil – has slowed.
slightly to 1.39 million BPD and said it expected global demand growth
to slow to 1.2 million BPD in 2016.
halt in 2016 as lower oil prices and spending cuts take their toll. It
forecast zero growth in non-Opec oil supply in 2016 after an increase of
1 million bpd in 2015.