Our giant oil glut is going to get even bigger next year

Look out below.
Look out below.
Image: AP Photo/Gregory Bull
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Another day, another dramatic fall in oil prices.

Today, the international oil benchmark, Brent crude, briefly fell below $39 per barrel, and US benchmark, West Texas Intermediate, fell below $36 a barrel.

The reason? The International Energy Agency suggested in a report that world oil demand should slow slightly next year. That means there will be little additional demand to sop up the growing glut of oil sloshing around the world in storage tanks and storage tankers. (The IEA expects oil inventories to swell by 300 million barrels in 2016.)

Crude prices are flirting with levels last seen during the financial crisis and the worst of the Great Recession in early 2009.

And while US crude supplies fell a bit last week, they are still hovering near a record high.