The world Bank raised its forecast of oil prices


The world Bank raised its forecast of oil prices to $4 — from $37 to $41 per barrel, according to the website of a financial institution. The increase in forecasted prices for 2016, it connects with the expectations of reduction of surplus of oil on the market.

“Against the background of improving expectations and a weaker dollar, the 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 “a slightly higher energy prices” during the year due to recovery of balance after a period of excess supply. “At the same time, energy prices may fall even lower if OPEC will increase production significantly, and the production of non-OPEC members, does not fall as expected,” he said.

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

The price of the June futures for Brent crude close of trading on the London stock exchange ICE rose by 2.8% compared to the previous close. 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 against almost $51 in 2015. For 2017, the average price of oil, according to the IMF forecast, will amount to only $41. Conclusion in the Fund made on the basis of the data of the futures markets. In the organization noted that prices at $100 per barrel, “we will not see another for some time, if ever see them ever.”