The International Energy Agency released its monthly report on Tuesday, warning that an unseasonably warm winter and a growing supply will keep the oil market glut going until at least late 2016. Mild winter temperatures across the globe reduced oil demand growth to just 1 million barrels per day in Q4 of 2015.

The IEA maintained its 1.2 million barrel-per-day estimate for global demand growth in 2016.

Brent crude futures are now their lowest level since 2003, falling below $30 per barrel. OPEC announced in December that it will not be cutting its output despite a growing global oversupply.

In the IEA report, the agency concludes that the oil market is facing its third successive year where oil supply will exceed demand, straining the market and making it difficult for the oil system to absorb it.

As the world economy continues to slow, the IEA reduced its forecast for OPEC crude oil demand in 2016 to 31.7 million barrels per day, down 300,000 bpd.

Now that Iran’s sanctions have been lifted, the country states that it will raise its output by 500,000 bpd initially, but the IEA believes that the increase will be more modest, at a rate of 300,000 bpd.

The agency is maintaining its projection of a 600,000 bpd decline in non-OPEC output.