Brent crude oil prices are expected to be $8 a barrel (£5.2/Bbl) lower compared to earlier projections.
They are expected to average $58 a barrel (£37.9/Bbl) in 2016.
That’s according to the August Oil Market Report from Thomson Reuters.
The report states the expected decrease will be due to a stronger Chinese economy and an increase in future supply, particularly from Iran.
It adds current prices could rise up to $50 a barrel (£32.6/Bbl) “in the very short-term”, however prices are expected “to remain flat at these levels with no significant recovery expected until early 2016”.
It states it is set to remain at this price as a “key market level for the remainder of the year”.