Oil Prices Seen Staying Low Next Year as Demand Weakens

PARIS (AP) — The head of the International Energy Agency expects oil prices to remain low next year as demand weakens and supply remains high.

The price of oil fell this week to its lowest since early 2009, when the global economy was deep in crisis. The U.S. benchmark recovered 1.6% at $38.08 on Wednesday.

Fatih Birol, executive director of the IEA, which represents oil-consuming nations, told a news conference on the sidelines of the U.N. climate conference in Paris, said, “When we look at 2016, I see very few reasons why we can see growth in the prices.”

He warned, however, that investment in production is due to drop for a second consecutive year for the first time in 30 years. He noted that could cause “surprises” in supply in the future.

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