Additionally, the agency argues that global oil demand growth will also slow down to 1.2 million barrels a day in 2016 from 1.4 million a day this year, further weighing on oil prices.
“In the short term, the report is definitely bearish” because of its assessment of a massive surplus, Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd., told Bloomberg.
Consequently, if energy market continues to dip, oil traders can utilize inverse ETFs to hedge bets. For instance, the United States Short Oil (NYSEArca: DNO) tracks the opposite moves of the West Texas Intermediate crude oil futures, DB Crude Oil Short ETN (NYSEArca: SZO) tracks the simple inverse of oil, ProShares UltraShort Bloomberg Crude Oil (NYSEArca: SCO) tries to reflect the two times inverse or -200% daily performance of WTI crude oil, DB Crude Oil Double Short ETN (NYSEArca: DTO) also follows a -200% performance of oil and VelocityShares 3x Inverse Crude (NYSEArca: DWTI) takes the three times inverse or -300% performance of crude oil. [Inverse ETFs to Hedge Against Hurdles Ahead]
“The bottom of the market may still be ahead,” the IEA said. “Non-OPEC supply growth is expected to grind to a halt in 2016 as lower oil prices and spending cuts take a toll.”
For more information on the oil market, visit our oil category.
Max Chen contributed to this article.