Oil prices on the world markets will renew gains in 2017, when the global oil market will rebalance on a more sustainable basis, according to the expectations of the British consulting company Capital Economics.
Oil prices fell June 21, as investors weighed continued uncertainty ahead of UK's referendum this week and focused on the persistent overhang of crude, the Wall Street Journal reported.
Brent crude fell 1.1 percent to $50.11 a barrel on London's ICE Futures exchange. On the New York Mercantile Exchange, WTI futures were trading down 0.8 percent at $49.55 a barrel.
"The price of oil has already recovered beyond our end-2016 targets of $45 for both Brent and WTI, but we are not yet persuaded to change these forecasts," analysts of the Capital Economics said in a report, obtained by Trend.
The recovery, they believe, has been flattered by supply disruptions which may prove temporary, while prices are now back at levels at which drilling activity in the US is likely to rebound.
Oil prices are also vulnerable in the near-term to a UK vote for Brexit, analysts said.
The prices will rise to $60 a barrel in 2017, according to the analysts' forecasts.
The average price for Brent is expected by the analysts at $41.75 a barrel this year.