The world Bank raised its forecast of oil prices

Oil and gas development

The world Bank raised its forecast for oil prices by $4 from $37 to $41 per barrel, according to the website of a financial institution. Improving price forecasts for 2016 it connects with the expectations of reduction of excess oil on the market.

“Against the background of improving expectations and a weaker us dollar world Bank raises forecast of oil prices in 2016 to $41 per barrel from $37, while it is expected that the oversupply in the markets will decrease”, stated in the message.

According to the chief economist of the world Bank and lead author of the forecast John Baffes, the organization expects “slightly higher energy prices” during the year due to the recovery of balance after a period of oversupply. “At the same time, energy prices may fall even lower if OPEC will significantly increase production, while production of non-OPEC producers will fall, as expected,” he said.

The price of energy, including oil, gas and policysets 19.3% in 2016 compared with the previous year is “a more gradual drop than to 24.7% decline in the January forecast”, noted in WB.

The price of the June futures for Brent crude on the close of trading on the London exchange ICE rose by 2.8% compared with the previous closing. The price of a barrel was $45.8 per barrel.

Two weeks ago the international monetary Fund published its forecast for the oil price: the average price of a barrel of Brent in 2016 will amount to only about $34,75 vs. almost $51 in 2015. In 2017 the average oil price, according to the IMF forecast, will amount to only $41. Conclusion in the Fund made on the basis of data from futures markets. In the organization noted that prices at $100 per barrel, “we will not see for some time, if ever see them ever”.