• 3 minutes Biden Seeks $2 Trillion Clean Energy And Infrastructure Spending Boost
  • 5 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 8 minutes Gazprom fails to exempt Nord Stream-2 from EU market rules
  • 2 hours The Truth about Chinese and Indian Engineering
  • 3 hours Trumpist lies about coronavirus too bad for Facebook - BANNED!
  • 1 hour China wields coronavirus to nationalize American-owned carmaker
  • 1 hour China's impending economic meltdown
  • 4 hours Why Oil could hit $100
  • 19 hours The World is Facing a Solar Panel Waste Problem
  • 11 hours Pompeo upsets China; oil & gas prices to fall
  • 3 hours Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 6 hours Brent above $45. Holding breath for $50??
  • 2 hours Open letter from Politico about US-russian relations
  • 1 day Sell Natural Gas Benefits to Grow the Market!
  • 2 days The Core Issue Of US Chaos..Finally disclosed
  • 1 day Trump Suggests Delaying Election Amid Fraud Claims
  • 2 days Rational analysis of CV19 from Harvard Medical School
Russia’s Central Bank Against Copying Mexican Oil Hedge

Russia’s Central Bank Against Copying Mexican Oil Hedge

Russia’s central bank doesn’t think…

Surge In Gold Prices Could Be Bad News For Oil

Surge In Gold Prices Could Be Bad News For Oil

The ratio between gold and…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

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:


Download The Free Oilprice App Today

Back to homepage





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