(Ecofin Agency) - The Organization of Petroleum Exporting Countries, has said that the real price of a barrel of oil will not be $100 until after 2040, Business Insider reports.

The group stated that oil companies' expenditure cuts, which was planned for 2016 will restrict supply in the medium term, increasing the price gradually even though demand stays low. However, in nominal terms oil is to increase to nearly $160 a barrel in 2040.

"Reflecting on all of these considerations, the long-term value of the ORB is assumed to rise from more than $70/b in 2020 to $95/b in 2040 (both in 2014 dollars).

Correspondingly, nominal prices reach $80/b in 2020, rising to almost $123/b by 2030 and more than $160/b by 2040”, OPEC said in its report.