The nightmare of falling oil prices is dominating the World Economic Forum, which began on Wednesday in Davos, Switzerland, writes Bloomberg.
Oil executives, politicians and bankers said on the first day of the World Economic Forum that there may not be a recovery in oil prices this year, as major producers continue to pump oil while China's appetite for energy wans.
On the other hand, the return of Iranian oil to the world market could further reduce the price, reports Beta.
"This is the third year in a row that we have more supply than demand," said the director of the International Energy Agency, Fatih Birol.
He added that considering supply and demand this year, prices will continue to be under pressure.
"I see no reason why we should have a sudden price increase this year," said Birol.
The director of one of the largest traders in the world, Glencore Plc, Tony Hayward, believes that the situation will not improve until there is a "supply shock", because there is too much oil.
"Lifting sanctions on Iran will increase supply, so I don't see a bottom in oil prices and an imminent recovery," UBS director Axel Weber said, adding that lower prices would encourage Iran's rivals, such as Saudi Arabia, to produce even more oil.
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