Crude oil prices will remain relatively low through 2016/17.
Brent will average $40 per barrel (£27.6/bbl) this year and $50/bbl (£34.5/bbl) in 2017, according to the US Energy Information Administration (EIA).
West Texas Intermediate (WTI) oil is expected to be $2/bl (£1.38/b) and $3/bl (£2.07/b) lower during the same periods respectively, the EIA’s ‘Short-term Energy Outlook’ (STEO) stated.
Oil prices are expected to remain low as supply continues to outpace demand in 2016 and more oil is placed into storage, it added.
The EIA estimates global oil inventories are forecast to rise by an additional 0.7 million barrels per day (b/d) in 2016 before the global oil market becomes relatively balanced in 2017.
OPEC production is forecast to increase by 0.5 million b/d in 2016 with Iran accounting for most of that rise.