FXStreet (Mumbai) – The monthly Reuters poll on Thursday showed oil prices are likely to bounce back from six-month lows to end this year higher and climb further in 2016 mainly on account of rise in demand from emerging markets.

Analysts said a global supply glut and strong dollar should cap price gains and keep fuel costs well below recent averages over the next couple of years.

The Reuters survey forecast Brent would average USD 60.60/barrel in 2015 and USD 69/barrel in 2016, compared with an average so far this year of around USD 59/barrel and just under USD 100/barrel in 2014. US light crude would average USD 54.90/barrel in 2015 and USD 63.80/barrel in 2016, up from an average of USD 53/barrel in the year to date.

Shell cuts 6,500 jobs as oil price slump continues

Reuters reported that Royal Dutch Shell is to axe 6,500 jobs this year and step up spending cuts as it seeks to reassure investors it can withstand an extended period of lower oil prices, even through its planned USD 70 billion (GBP 44.8 billion) acquisition of BG Group.

The monthly Reuters poll on Thursday showed oil prices are likely to bounce back from six-month lows to end this year higher and climb further in 2016 mainly on account of rise in demand from emerging markets.

(Market News Provided by FXstreet)

By FXOpen