Oil prices slumped to below US$28 a barrel, its lowest level since September 2003 amid news of Iran's return to the world's over-supplied markets. Iran is expected to add 500,000 bpd to the global markets. The price slide came after Opec said persistently low prices would finally begin to bite for rival producers in 2016, forcing the US and Canada to cut back on production this year.
In its latest monthly review of the oil market, Opec said non-Opec supply would shrink by 660,000 bpd this year, above previous estimates of just 270,000. Non-Opec production grew by more than expected in 2015 to 1.23 mln bpd according to a report that predicted 2016 was finally the year markets began to rebalance. Oil prices have collapsed by 75% since the summer of 2014. Record stockpiles have also put pressure on the world's storage capacity, forcing prices into negative territory in some parts of the US. One major US refiner - Flint Hill Resources - said it would now charge producers -US$0.50 a barrel for North Dakota South - a variant of crude. Saudi Arabia has led the charge in maintaining output, producing 10.25 mln bpd in December, a hike of 750,000 bpd from the end of last year, as per thetelegraph.uk
19-Jan-16 
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