Oil prices will soon move up again, as producers look to make profits from their oil fields, according to a new forecast from the World Wildlife Fund (WWF).
The report from the group said oil producers are now on track to hit $30 per barrel of Brent crude oil.
It comes after OPEC agreed to curb production to avoid a glut in supply that could undermine the global economic recovery.
The price of oil has been falling in recent months and it could be the beginning of the end for a boom in oil and gas production that began a decade ago.
“The oil industry is in a difficult position,” said Stephen Korn, a WWF senior policy analyst.
“It is trying to make money from its oil and natural gas assets and we have seen a lot of speculation about the future of the industry.”
The WWF’s Oil and Gas and Climate Change Programme director, Matt Burt, said the industry had been “recovering slowly over the past few years.”
“It’s been a slow recovery,” he said.
“We expect oil and other natural gas will continue to see a decline, but the industry is starting to make some headway, but still there’s a long way to go.”
The report also predicted that global demand will fall to 3.1 million barrels per day by 2025, from 5.5 million in 2030.
WWF expects the world’s remaining fossil fuel reserves will be depleted by the end of this century, leaving the oil industry with only 5.6 million barrels of oil reserves.
The group said the oil and chemical industry was expected to be the biggest beneficiary of the downturn, with total production expected to increase by 8.1% to 2.7 million barrels a day in 2025.
It added that the oil sector is likely to benefit most from the economic slowdown in China.