The International Energy Agency says oil prices may fall further this year due to low demand, warm winter weather and an oversupply of crude.
The organization, which advises countries on energy policy, said in its monthly report Tuesday that global excess supply may reach 1.5 million barrels per day during the first half of the year.
"Unless something changes, the oil market could drown in over-supply," the IEA said.
U.S. crude prices have fallen 24 percent since the beginning of the year. Benchmark U.S. crude fell $1.03, or 3.5 percent, to $28.39 a barrel in New York on Tuesday.Click here to read more.
Many oil companies, including Chevron and BP, have cut jobs and reduced spending to save money.
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