IEA sees oil glut worsening as demand growth slows

[LONDON] Global oil markets will remain oversupplied at least until the end of 2016 as demand growth slows and OPEC output booms, putting oil prices under further pressure, the International Energy Agency (IEA) said on Friday.

The IEA, which advises developed nations on energy policies, said global oil oversupply was set to worsen in the months to come as additional supplies from Iran - when and if Western sanctions on the country are removed - would push more oil into storage.

But it added that the pace of record global stock-building would slow down next year and that it was very unlikely that the world would to run out of storage capacity. "World oil markets will remain oversupplied at least until late 2016 ...although the pace of global stock builds should roughly halve next year," the IEA said in its monthly report.

REUTERS