BAKU, Azerbaijan, June 6. The World Bank has revised down the average projection for crude oil prices in 2023 by $8/bbl from the January forecast, now standing at $80/bbl, Trend reports.
However, there is an anticipated slight increase to $82/bbl in 2024, reflecting a modest rise in demand.
On the other hand, prices for natural gas and coal are expected to moderate in 2023 and experience a further decline in 2024. This is due to Europe's significant progress in enhancing efficiency and reducing energy consumption. Despite having elevated inventories, natural gas prices in Europe are expected to remain well above their pre-pandemic five-year average.
As the WB expects, if global demand for energy is weaker than anticipated, it could result in lower energy prices.
The prospects in China are particularly crucial in this regard, as it is projected to contribute to over 50 percent of the global oil demand increase in 2023. On the positive side, there are risks to the price forecast that revolve around limited expansion in US oil production, insufficient spare capacity among OPEC members, and the potential for the cartel to implement additional output cuts.