The International Energy Agency (IEA) has predicted that oil prices could fall over the next five years as a result of the slow global economy and low demand in comparison to the rising world production of oil following increased output from North America and Iraq.

The IEA has stated that the average price of oil per barrel should drop from $107 this year, to around $89 in 2017. They noted that “even China, the main engine of demand growth in the last decade, is showing signs of slowing down.” This poor economic growth, mixed with improvements to efficiency and a general theme to move away from fossil fuels, will mean that demand will be much lower than initially predicted.