Only a gentle recovery in oil prices is seen. OPEC's basket of crude oils is assumed in the report at $55 in 2015 and to rise by $5 a year to reach $80 by 2020.

The trend demonstrates Russia's resolve not to cut output despite calls from OPEC to independent producers to curb production to support falling prices.

The oil-rich kingdom spent hundreds of billions of dollars at home in the past decade to bolster its economy and dole out subsidies that provide cheap energy and food for its 30 million people, as it enjoyed years of high crude prices. But the price of oil has fallen by more than half since the middle of last year, forcing the government to dip into reserves, reassess its spending plans and look for ways to diversify sources of revenue.

U.S. Rig Count is down 9 rigs from last week to 700, with oil rigs down 3 to 538, and gas rigs down 6 to 162.

The US Federal Reserve subjects banks with at least $50bn in assets, including the US arms of foreign banks, to an annual stress test, that is designed to ensure they could keep trading through a deep recession and a big shock to the financial system.

Organization of the Petroleum Exporting Countries said it expects the price of its basket of crudes to rise to $70 a barrel in 2020 and $95 a barrel in 2040, compared with​$30.74 a barrel on Monday.

OPEC assumes that prices will rise to average $80 a barrel in nominal terms in 2020, and $70.70 in real terms. Last year it had anticipated nominal prices of $110 and real levels of $95.40. That means the value of the group’s output in 2020 would be $218 billion less than estimated a year ago, when it first embarked on the policy to protect market share.

Global energy demand is set to increase by almost 50% in the period to 2040, with the overall energy mix continuing to be led by fossil fuels at almost 78%

Shell has already taken action to cut costs and reduce spending this year by $12 billion, but Tuesday’s announcement of a $33 billion target for next year is $2 billion below the company’s previous guidance.

“You also need a low cost structure and a strong balance sheet for a strong credit rating with good access to the debt markets,” Lance said. “A company like ours also needs to be able to react quickly to developments.”