By the end of next year, oil prices will drop to $60. This is good news for drivers

Experts warn that global oil surplus is’staggering,’ and could lead to a drop in petrol prices

Analysts predict that oil prices could drop to $60 (£47), a barrel, in the next 18-months.

In response to predictions of a global oil oversupply by 2030, the expectation of lower petrol price has been born.

Citigroup experts predict that a glut of crude oil supply will cause companies to reduce prices. The price will drop to $60 per barrel in the next 18-months, from its current $80.

This will not only make filling up at the pump cheaper, but could also lead to lower airfares due to the falling price of aviation fuel.

The International Energy Agency had warned earlier in the week that global oil supply would exceed by 2030.

Citi said that the likely outcome would be “a very large surplus” in late 2025. This will fuel a fall in petrol and diesel prices.

This will be a great thing for drivers but it will put pressure on the North Sea fossil fuel producers who are already suffering from high taxes.

Labour announced plans on Thursday to extend the windfall tax for oil and gas a year, to 2029, if they win the general elections.

The proposed tax hike of 3pc was accompanied by the elimination of offshore tax breaks for the industry.

Sir Keir said that in his manifesto, this would raise £8.3bn (£8.2bn) in taxes. This money will be used for Labour’s Great British Energy, a publicly owned company focused on “delivering energy back to the British People”.

Green groups have praised the plan, but industry analysts warn that the combination of lower prices and increased taxes will make North Sea “the world’s most hostile” environment for oil and gas companies.

Ashley Kelty of Panmure Gordon Investment Bank, an oil analyst, said that Labour’s plans would leave the UK poorer and colder. The North Sea will become the most hostile environment in the world for oil and gas companies – aside from war zones.

He and others are of the opinion that Labour’s plans would halt the majority of new developments in this region, including the Cambo Oil Field Project in the West Shetland.

Chris Wheaton, a Stifel analyst, said that Labour’s tax plan would “kill the North Sea”.

He said: “There won’t be much new investment, and the UK oil and natural gas production will fall very quickly – faster than demand.” The UK will be increasingly dependent on foreign countries for its energy.

Ed Miliband said that Labour’s shadow secretary for energy, Ed Miliband: “Labour offers the country the most aggressive climate and energy plan ever in British history. We are investing in Great British Energy to cut energy bills, secure our energy, create jobs, and protect our homes for our children and our grandchildren by tackling climate emergency.”