The World Bank (WB) lowered its forecast for the average oil price for the next two years to $ 67 per barrel. This is $ 4 below its December forecast.
In December, the World Bank expected the average price of oil for the next three years at $71 per barrel, in the June report - $69 per barrel.
“Oil prices are expected to be at $67 a barrel in 2019 and 2020, which is $2 lower than expected in June,” the bank’s report on World Economic Outlook for January says. But it is added that the uncertainty around this forecast is still very high.
“At that time, an increase in demand for oil is expected, a reduction (of this demand due to a fall in GDP growth) in emerging markets may have a more serious effect than expected,” RIA Novosti quotes analysts.
The situation also depends on the agreements of OPEC countries and their partners in oil production. The World Bank notes that despite the agreements reached, the details of this transaction are still not fully understood by the market.