Global oil glut set to worsen, says IEA

(guardian-, 9 Feb 2016) International Energy Agency warns stocks likely to rise by 2m barrels a day in first quarter despite recent price rise.

The global oil glut is larger than previously thought and the risk of prices falling further has increased, the International Energy Agency has said.

In its monthly report, the IEA warned that the recent respite was likely to be a “false dawn” and market conditions were weaker than the agency believed when it predicted last month the world could drown in supply .

The agency issued its gloomy commentary as Goldman Sachs predicted further volatile price swings and said oil could fall to less than $20 a barrel as global storage capacity runs out.

The price of oil has risen since it tumbled to a 13-year low in January. After falling below $28 a barrel , Brent crude climbed to more than $35 at the end of last month, though that was less than a third of the $115 peak in summer 2014.

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guardian-, 9 Feb 2016: Global oil glut set to worsen, says IEA