As the price of oil has sunk to twelve year lows this week, the International Energy Agency have warned of an overhang of at least one million barrels a day for the third consecutive year in 2016, a slump which has been described as the worst in post-war history.

Since recent figures, analysts have cut their 2016 oil price forecasts, with economists at the Royal Bank of Scotland predicting that oil could continue to fall to $16 – $12 less than the price it currently stands.

With the continual slump in price, due to a problem of oversupply, the oil market “could drown in oversupply”, according to the wealthy nations’ energy watchdog.