Today the International Energy Agency announced that the oil market is headed for another period of oversupply.
According to the IEA, right now the United States is producing more oil than there is demand for on the market. The US has repeatedly broken production records and, save for a few temporary exceptions, has been constantly increasing the number of barrels per week for a long time now. Even back in 2015 and 2016 the United States was not at all discouraged by the low oil prices, since their shale oil methods allows them to pump and refine oil much more cheaply than other countries do.
Meanwhile, the Organization of Petroleum Exporting Countries (plus Russia) have been keeping production levels low on purpose for a couple of years. They even recently renewed their commitment, despite some members growing impatient, desiring higher production quotas. OPEC+ wants to limit supply in order to allow oil prices to increase.
However, with how much oil the US is making, and with dropping demand all over the globe, it seems that supply is quickly outpacing demand. The IEA sees the oversupply extending into 2020, if nothing changes.
