The global oil market is suffering from a supply glut that has depressed crude oil prices for more than two years now. U.S. drillers have responded to the downbeat oil prices by shrinking existing projects and holding off new projects. That has seen investment in new oil production fall in 2015 and 2016. Crude prices started declining in mid-2014. Energy industry has also been hit with a string of layoffs as drillers and other industry players try to whittle down costs in an uncertain market.
IEA fears 2017 could be another downbeat year for the oil industry, fueling volatility in crude oil markets.