WB cuts its forecast on average oil price for 2019-20


January 9, Fineko/abc.az. The World Bank has lowered its forecast on the average price for oil for the next two years.

The statement was published in January’s WB report on the prospects of the world economy.

According to the new forecast, in 2019-20 a barrel of oil will cost an average of $67. At the same time, in June’s report the Bank predicted this figure at the level of $69. And the forecast for the next three years, released in December, featured the average price per barrel of oil at $71.

The uncertainty around this forecast is still very high, the WB report makers say. In particular, the situation depends on the agreements of OPEC countries and their oil production partners. In addition, reduction in demand for oil in emerging markets (it may be caused by fall of GDP) may affect more seriously than it was expected

In December, following the OPEC+ meeting, a decision was made to reduce oil production by 1.2 million bpd from January 2019, within six months. Of them, 800,000 barrels of oil will account for the OPEC member states and the rest for the states that are not members of this organization.