Experts are predicting that fuel prices will rebound this summer amid fears of deflationary pressures slowing down economic recovery in Europe, and exceed current price levels by the end of the year as industry production cutbacks kick in, reported CNBC.

Petroleum companies are rapidly trying to scale back operating costs to meet slower demand as businesses worldwide look to alternative and cleaning burn energy sources.

The American Shipper said 150 drilling rigs have been shut down in the past two weeks, and oil and gas services firms Schlumberger and Baker Hughes are cutting 16,000 jobs between them.

Crude oil prices are expected to rise to US$70 a barrel in 2016, but not before they fall further, possibly to $30 a barrel, or even $20 a barrel, commodities Citi analyst Eric Lee.

Even OPEC producer Iran has issued statements that it can envision oil prices coming down to $25 a barrel in the near future.

Supply is so great now that there is not enough storage capacity and some producers are looking for tankers to store products at sea, but inventories are expected to come down by the fourth quarter, Mr Lee said.

Former Shell Oil president and founder of Citizens for Affordable Energy, John Hofmeister, anticipates that fuel prices will make a come back by the fourth quarter or year-end to last June's levels.

Global demand will hit 100 million barrels a day by 2018 or 2019, and crude oil prices will return to last year's levels then because production will be unable to keep up, Mr Hofmeister added.