Pouring oil on troubled waters: 'Surplus until 2017'

As the price of oil continues its decline, economists have warned on a lack of upward price pressures for the commodity for at least another two years.

Thomas Pugh economist at Capital Economics predicts oil could hit $55 per barrel for Brent crude at the end of 2015, with oil to remain in surplus for another couple of years.

"The market is still going to be in surplus by this time next year, so by the time you actually have supply and demand starting to equate, it will be well into 2017," he told CNBC via telephone.

The oil industry is full of booms and busts. The norm for oil for the last decade has been $90 - $100 per barrel, but Brent is currently trading closer to $45 a barrel.

The U.K. oil giant BP announced on Tuesday it was slashing costs as it prepares for a long term low oil price environment. The company is planning for oil to be around $60 per barrel until 2017. (by Tanzeel Akhtan, CNBC)