French energy giant Total stated this morning that it expects the price of oil to remain low for the next year, as supply continues to grow faster than demand.

The price of Brent crude has fallen more than 60 percent over the last year, standing at around $43 a barrel; some of the lowest prices in the last ten years. US light crude is trading below $40 a barrel.

Total CEO Patrick Pouyanne confirmed that he “doesn’t anticipate a recovery in 2016”, and expects supply to continue to outstrip demand. US shale oil has flooded the market over the last 18 months leading to over supply issues which, combined which economic crises in both China and Europe, has pushed down prices.

To add to the problem, the Organization of the Petroleum Exporting Countries (OPEC) ended its meeting this morning without announcing any plans to curb output and lower production, meaning the supply problem will continue. There was no reference to an output ceiling, which could exacerbate the problem when Western sanctions are lifted against Iran and their oil hits the market. A stronger dollar also made it more expensive to hold crude positions.

Crude oil is currently down 2.7 percent at $39.97 a barrel, with Brent down 1.95 percent at $43 a barrel.

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