Next year’s oil prices ‘lower than thought’

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 […]

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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”.