The price of oil may finally have bottomed, and there is “light at the end of what has been a long dark tunnel,” in the markets, according to the latest Oil Market Report from the International Energy Agency, released on Friday morning.
Oil prices have crashed from highs of more than $100 a barrel in mid-2014 to as low as $27 in January, wiping out more than 70% of the commodity’s value.
But prices have started to recover over the past month, this week passing above $40 a barrel for the first time in 2016.
The IEA says this slight recovery points to oil “bottoming out” and finally ending its run of long-term losses. “It is clear that the current direction of travel is the correct one, although with a long way to go,” the Oil Market Report said.