WB downs cast on oil price for 2016


The World Bank (WB) cut its oil price forecast for 2015 from 57 to 52 dollars per barrel.

This is stated in the quarterly report on the bank’s international commodity markets, published on its website.

WB analysts associated this with a further slowdown in the global economy, large reserves of oil, as well as expectations that Iran will resume oil exports after the lifting of international sanctions.

World Bank has lowered oil prices forecast for 2016 from $61 to $51 per barrel.

Bank experts believe that energy prices in the current year as a whole will be 43% lower than in 2014.

According to the report, in a few months Iran will be able to enter the pre-sanction period production level of 3.6 million barrels of oil per day. At the same time Iran can immediately start exporting oil using its own reserves (40 million barrels).

In addition, 18 percent of the world’s gas reserves are in Iran, which is a significant factor in the long term. The bank’s experts believe that the reduction in world oil prices may also contribute to the growth of oil production in OPEC member countries and shale oil production in the United States.