IEA cautions consumers about 'cheap oil'

In a report published on Monday, the agency predicted a recovery in oil prices to commence in 2017, despite Brent futures having ended 2015 nearly 36% lower on an annualised basis.

The IEA forecasts that global oil supply will grow by 4.1m barrels per day between 2015 and 2021, down from an increase of 11m bpd between 2009 and 2015. It also predicts investment towards oil exploration and production to fall by 17% in 2016.

Commenting on the forecast, Dr Fatih Birol, executive director of the IEA, said: "It is easy for consumers to be lulled into complacency by ample stocks and low prices today, but they should heed the writing on the wall: the historic investment cuts we are seeing raise the odds of unpleasant oil-security surprises in the not-too-distant-future."

Oil prices have seen a marginal recovery in recent weeks, but remain well short of $115 per barrel levels seen in June 2014. At 1958 GMT, the Brent front-month futures contract was up 4.91% or $1.62 to $34.63 per barrel.