The price of oil could be on course for a gradual drop over the next five years according to the latest report from the International Energy Agency.
The IEA, which advises industrialised nations on energy policy, forecast that oil production capacity will grow as demand falls.
Its report puts current supply just ahead of demand, but slow economic growth and rising energy efficiency, combined with sharp production increases in Iraq and North America, should see production outstrip demand by more than six per cent by 2017.
It is a different story in Iran though. The IEA reckoned that Iranian oil production in September fell to its lowest level for 23 years at 2.63 million barrels per day.
The report said US and European Union sanctions over Iran’s nuclear programme appear to have maintained their effectiveness, when many thought Iranian exporters might have found ways around the sanctions.
It is estimated that Iranian oil exports in September were less than half of what they were last year.