"In fact, we forecast that Saudi and other low-cost producers will continue to increase output as this is the next logical step to maximizing revenues in the face of shale oil's scalability," the bank said in a note.

The global oil market would remain oversupplied in 2016 on increased production from OPEC, Iraq and Russia, the bank said.

(Reporting by Arpan Varghese in Bengaluru; Editing by Phil Berlowitz)