LONDON: The oil market has entered a new era with lower Chinese economic growth and booming US shale output, making a return soon to high prices unlikely, the West’s energy watchdog said.

The International Energy Agency, which typically refrains from predicting oil prices, said in its monthly report that prices could fall further in 2015 after declining to their lowest levels since 2010 below $80 per barrel.

Barring any new supply disruption, “downward price pressures could build further in the first half of 2015,” it said.

Oil prices have fallen 30 percent since peaking in June, pressured by a strong US dollar and rising USlight oil output while largely ignoring the impact of Libyan supply disruptions.