W/Bank sees world oil price rising to $60 early next year as producers maintain cuts
World Bank forecast team has said that global oil prices, currently backed by production cutbacks by the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC states, will allow markets to gradually rebalance and steady at $60 by next year.
Otherwise, the institution retained its forecast for crude oil prices this year at $55 per barrel, but its projecting a price increase of $60 a barrel by 2018, owing to production cutback of petroleum exporting countries.
Details from the April Commodity Markets Outlook showed that the World Bank is holding steady its crude oil price forecast for this year at $55 per barrel, but noted of a projected increase to an average of $60 per barrel in 2018.
The report said “Rising oil prices, supported by production cutbacks by the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC states, will allow markets to gradually rebalance”.
While noting that the oil price forecasts are subject to downside risks should the rebound in the US shale oil industry be greater than expected, it averred that “Crude oil inventories have remained high, mainly in the United States, but are expected to start declining in the second quarter as seasonal refinery demand picks up”.
