A faltering global economy, dampening oil demand growth and the return of Iran to international markets ensure that oversupply in global oil markets will persist into 2017. Disarray within Opec means that a unified decision to reduce output remains as distant as ever.

Moreover, both Opec and the IEA have this month revised upwards their forecasts for non-Opec supply growth in 2016. All this means that MEES calculates that 2016 will end with a global oversupply of around 500,000 b/d. Much less than the current 2mn b/d or so, but still a considerable volume. (CONTINUED - 729 WORDS)