The World Bank expects oil prices to average $67 a barrel this year and next, down $2 compared to projections from June last year, the bank said in its Global Economic Prospects report , in which it also revised down its global growth projections amid “darkening skies” for the global economy. Oil prices were highly volatile in the second half of 2018, with sharp plunges toward the end of 2018, chiefly due to supply-side factors, the World Bank said. Last year, oil prices averaged $68 a barrel, slightly lower compared to the bank’s forecast from June 2018, but 30 percent higher than the average price of oil in 2017. “Oil prices are expected to average $67/bbl in 2019 and 2020, $2/bbl lower than June projections; however, uncertainty around the forecast is high,” the World Bank said in its January 2019 Global Economic Prospects report. This year, oil demand growth is expected to stay robust, but expected slowdown in emerging market and developing economies (EMDEs) “could have a greater impact on oil demand than expected,” the World Bank said. The outlook for the supply-side is also uncertain as it largely hinges on OPEC and allies’ decisions about production levels, especially […]
