BAKU, Azerbaijan, January 11. Global energy prices are expected to ease in 2023, Trend reports, citing the latest economic outlook from the World Bank (WB).
Although, as the Bank noted, the prices will still remain high, mainly due to an upward revision to coal prices.
Thus, according to the outlook, crude oil prices are projected to moderate to an average of $88 per barrel in 2023, which $4 per barrel below the previous forecast.
"The downward revision is primarily due to slower global growth and the subsequent weakness in oil demand in 2023, particularly in Europe," the report explained.
The WB noted that Russian oil exports are forecast to drop in 2023, due to additional EU sanctions that started in December 2022 for crude oil and will follow up in February 2023, this time - for oil products.
"The overall reduction in Russia’s exports is likely to be smaller than initially expected, however, as the G7 oil price cap will enable countries that import oil from Russia to continue the war in Ukraine," the report added.
Meanwhile, struggle for liquefied natural gas (LNG) will remain intense at the global level, as European countries continue to import large volumes of LNG to replace lower imports from Russia
"Coal prices will ease from extremely elevated levels as production rises, especially in China and India," the report added.