The oil price is trading lower today as the world’s oil watchdog today predicted that unless something was done to cut back production we could see the price significantly lower.
The International Energy Agency noted today, output in oil had reached record levels and that OPEC members must agree to cuts starting with their meeting on November 30th.
"October proved to be another record-breaking month for OPEC, with crude oil output rising 230,000 barrels a day to 33.83 million barrels a day,"the IEA said in its monthly report on the oil market.
"This means that OPEC must agree to significant cuts in Vienna to turn its Algiers commitment into reality," it added.
Even Russia, a no OPEC member has been pumping oil at record levels, which may also keep the priced subdued for a lot longer.
“With record October output from both Russia and OPEC, producers are already pushing back the calendar on when the global market might rebalance,” said Tim Evans, a Citi Futures analyst.
Another problem for the outlook for Oil is President in waiting Donald Trump’s proposal to make fracking more widely available in the US next year which would also add significant pressure to the price as a new flood of oil hits the market.