Oil supply will exceed demand by 1.5 million barrels of oil per day in the first half of 2016 - IEA

Almaty. January 19. Silkroadnews - In the first half of 2016 oil supply will exceed demand by 1.5 million barrels of oil per day, according to the forecast by the International Energy Agency (IEA).
“Despite we do not make the official forecasts for OPEC oil, under scenario in which Iran adds another 600 thousand barrels of oil per day to the market by mid-year, while others keep their previous rates of production, the supply at the global oil market will exceed demand by 1.5 million barrels of oil per day in the first half of 2016. If nothing changes, the oil market can be drowned in over-production and the oil prices fell even lower”, the IEA report says.
It is also noted the dollar strengthening shall inevitably impact the exchange rates in the oil-exporting countries, thus, increasing the pressure on the oil demand growth.
As it was reported earlier, within six months Iran intends to return to the crude oil exports volume - 2.1 mln barrels per day – it used to have prior to sanctions, the current oil production cost at the land mine fields in Iran is $10/barrel.
The weighted average cost of the near-month crude oil futures contract made ICE Brent Crude Futures $28.55 (-0.39) per barrel at Inter Continental Exchange (ICE) in London.