The International Energy Agency (IEA) released its 2016 Medium-Term Oil Market Report, where it stated that oil production in the world has finally begun to decline after the prolonged period of low prices. Currently, the decline in production may still be insufficient to balance supply and demand, but will happen in early 2017.
The IEA, based in Paris, France, issued the report Monday in Houston, Texas, under the first day of the 2016 CERAWeek Energy Conference, a five-day event considered one of the most important forums on the energy industry in the world.
The report noted that, while oil prices should start to rise gradually once the market begins to balance, the availability of crude oil that can be extracted easily and quickly will limit the extent of the increases, at least in the short term.
However, there is still a risk of a rise in oil prices in the latter part of the year, derived from the lack of investment, warned the report.