• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 8 minutes What Can Bring Oil Down to $20?
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 6 mins Alberta govt to construct another WCS processing refinery
  • 48 mins Let's Just Block the Sun, Shall We?
  • 1 hour U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 3 hours Venezuela continues to sink in misery
  • 18 hours OPEC Cuts Deep to Save Cartel
  • 4 hours Quebecans Snub Noses at Alberta's Oil but Buy More Gasoline
  • 22 hours $867 billion farm bill passed
  • 2 days Sleeping Hydrocarbon Giant
  • 2 days Sane Take on the Russia-Ukraine Case
  • 1 day Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 23 hours IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 20 hours Global Economy-Bad Days Are coming
  • 22 hours Regular Gas dropped to $2.21 per gallon today
Alt Text

Asian Oil Futures Point To Higher Crude Prices

Asian Crude and LNG futures…

Alt Text

Morgan Stanley Slashes Oil Price Forecast For 2019

Investment bank Morgan Stanley has…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

World Bank Maintains Oil Price Forecast At $55

In its latest Commodity Markets Outlook, the World Bank maintained its Q1 forecast for oil prices at $55 a barrel, saying, however, that overall energy prices will increase 26 percent in 2017.

The WB is overall optimistic for oil, expecting supply to tighten in the current quarter as OPEC and non-OPEC production cuts start to affect global supply. In that, the institution differs from some energy analysts who are markedly bearish on oil prices.

Based on this optimism, the World Bank expects crude prices to reach $60 a barrel next year – the price level that Middle Eastern producers would like to see sooner rather than later. Oil is unlikely to go much higher than this, however, the WB argues, shale output increases will limit the upward potential of prices.

If shale production rises faster than the bank expects, this would put additional pressure on prices and would slow down the rebalancing of the market. It would also lower compliance with the OPEC deal, which is also a possibility as the current reductions in output are taxing for many producers’ budgets, and an extension could motivate some of them to cheat.

On the other hand, any unplanned supply outages in Libya and Nigeria – both exempt from the OPEC cut – as well as over-compliance with the production cut agreement could send oil higher. Related: Iceland Geothermal Project Completes Deep Drilling In Volcano

In the first quarter, the World Bank noted that overall energy prices increased by 6 percent, largely on the back of improving oil prices, which added 8 percent in the period. Gas and LNG prices also jumped, spurred by greater demand for what many call the bridge fuel of the near future.

It’s the increase in gas prices that will drive the overall 26-percent jump in energy prices this year, according to the World Bank: global natural gas prices are set to rise by 15 percent, led by a 20-percent increase in U.S. prices resulting from stronger local demand and growing exports.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment
  • Scott Leach on April 27 2017 said:
    This is nothing more than a jawbone article to keep prices from tanking. Here is how the week goes in the oil speculation industry...really it is a Tuesday - Monday work week.

    Tuesday - API
    Wednesday - EIA
    Thursday - JAWBONE AWAY THE PREVIOUS TWO DAYS!
    Friday - Rig Report

    Monday....eat snacks and let the AI wabble.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News