By Jonathan Davies

Oil prices could continue to fall as a result of huge oversupply, according to the International Energy Agency (IEA).

Oversupply was blamed for a huge crash in prices last year. Oil prices fell from $115 per barrel to as low as $40 between summer and the end of the year.

Prices have since stabilised between $50 and $60. The price of Brent crude oil currently stands at $59.

But the IEA is warning that the oil market cannot use the amounts being produced. It said that prices are likely to fall again, and remain low well into 2016.

"The oil market was massively oversupplied in the second quarter of 2015, and remains so today," the IEA said in its monthly report.

"It is equally clear that the market's ability to absorb that oversupply is unlikely to last. Onshore storage space is limited," it said, adding: "Something has to give.

"The bottom of the market may still be ahead."