As oil prices continue to worsen and approach 11-year lows, the International Energy Agency (IEA) warns that the global oversupply of crude could worsen in coming months, according to Reuters.
At the end of last week, Reuters noted that Brent and West Texas Intermediate (WTI) futures fell as much as 5% on Friday, Dec. 11, and 12% on the week due to market conditions.
The IEA warns that demand is slowing. World oil demand growth of 1.2 million barrels per day (mb/d) is forecast in 2016, as first signs of a slowdown appear, stated the IEA Oil Market Report for December.
Crude prices have fallen with little restraint since OPEC abandoned its output ceiling of 30 million bpd; and banks, such as Goldman Sachs, are predicting that oil could fall to $20 if the world runs out of capacity to store unwanted supply.