Although a recovery in the price of oil – which has fallen over 60 percent since June 2014 — might not be “imminent”, there are tentative signs that the tide is turning, according to the International Energy Agency’s (IEA) latest report.
“How low the market’s floor will be is anybody’s guess. But the selloff is having an impact. A price recovery – barring any major disruption – may not be imminent, but signs are mounting that the tide will turn,” according to the IEA’s monthly report on the outlook for the global oil market.
The IEA forecast that global growth in the demand for oil could modestly accelerate in 2015 to 910,000 barrels a day (up 1 percent on the previous year) “as macroeconomic momentum is tentatively forecast to pick‐up.”
Earlier this week, the World Bank forecast that the global economy would grow 3 percent in 2015, albeit lower than a previous forecast of 3.4 percent made last June.
Global oil prices are wallowing near six-year lows around $45 a barrel, having fallen some 60 percent since a high of $114 a barrel in June 2014. On Friday morning, benchmark Brent crude futures were trading at $48.47per barrel and U.S. crude was trading at $46.51 a barrel.
The precipitous fall has occurred on the back of an oversupply in the commodity and lack of demand on slowing global growth.