Oil: Where is it going?

There is enough oil out there to keep prices low through 2017, although likely a little above the unusually low prices that marked last year. A new deal reached by the Organization of the Petroleum Exporting Countries in late 2016 could shore up prices to some degree but plentiful supplies are likely to cap any hikes.

"Oil prices could be higher in 2017," said the ADB's Zhuang. "A likely range is $50 to $60 per barrel on average."

The move by OPEC countries to curb production alongside non-OPEC countries at the end of last year could help tighten global markets, said Christopher Haines, head of oil and gas at BMI Research.

"If effectively implemented, we expect the global oil market to return to balance in (the first quarter of 2017), thereby accelerating the drawdown in global crude stockpiles," said Haines in a note.

One important shift that is likely to fully catalyze in 2017 is "the adoption of higher fuel standards, with both China and the US moving toward Euro-V equivalent standard," said Haines, referring to European emission requirements.

The sheer size of the two countries is likely to have a huge impact on fuel efficiency and the consumption of cleaner fuels. BMI expects the US and China together will account for half of all gasoline and 28.5 percent of diesel consumed around the world.