![IEA: “A projected marked slowdown in demand growth next year ... [will] likely to keep the market oversupplied through 2016."](https://globalnews.ca/wp-content/uploads/2015/10/oil-rig1.jpg?quality=85&strip=all&w=720)
The slowdown taking hold in Canada’s oil patch could drag on well into next year, experts are now saying, with oil prices expected to remain low for even longer than previously thought.
The latest monthly report from the International Energy Agency, published Tuesday, cut its forecast for oil demand growth for next year by about 200,000 barrels a day compared with its previous assessment in September.
“The market may be off balance for a while longer,” the Paris-based energy watchdog said.
MORE: Complete coverage – plunging oil
In its closely watched report, the IEA said it now sees world oil consumption rising by 1.2 million barrels a day in 2016, compared with 1.8 million barrels a day in 2015.
A slowing Chinese economy — the second-biggest in the world after the United States, will hamper demand. The price of oil is also plagued by overproduction which has led to a glut, something that could worsen as trade restrictions are lifted on Iran allowing it to sell crude into the open market.
Iran’s production could ramp up toward 3.6 million barrels a day from 2.9 million barrels a day currently, the IEA said, adding to the glut of crude once international sanctions are terminated early next year.
“A projected marked slowdown in demand growth next year and the anticipated arrival of additional Iranian barrels…are likely to keep the market oversupplied through 2016,” it said.
MORE: Plunging oil prices not to blame for Alberta’s woes, think tank says
WATCH: Thousands of people in Alberta have been laid off due to the low price of oil. While the price rallied this week, many are still facing layoffs. Reid Fiest reports.
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