PARIS—Oil hit a six-year low in August, and the the International Energy Agency expects the year of sliding prices to trigger a cut in non-OPEC production in 2016.
The agency said lower outputs in the U.S., Russia, and the North Sea are expected to drop overall non-OPEC production to 57.7 million barrels per day, a drop of nearly half million barrels.
Meanwhile, Goldman Sachs said the glut could drive the price of oil to $20 per barrel.
According to the IEA, OPEC crude supply also fell in August, dipping by 220 000 barrels per day, led by declines in Saudi Arabia, Iraq and Angola. The group’s output stood 1.2 million barrels per day higher than a year earlier, however.
Overall, the IEA said global oil demand growth is expected to climb to a five-year high of 1.7 million barrels per day in 2015, before moderating to 1.4 million barrels per day in 2016, “thanks to lower oil prices and a strengthening macroeconomic backdrop.”