WB raises oil price forecast for 2015
Baku, Azerbaijan, July 30
By Azad Hasanli - Trend:
The World Bank (WB) forecasts an average annual oil price at $ 57 per barrel in 2015, the "Commodity price forecast" report, published on the WB website, said.
In its April report, the WB forecasted the oil price at $53 a barrel for the current year.
"The forecast has been revised due to 12 percent increase in energy prices during the second quarter of 2015," according to the updated report.
At the same time, despite the rise in oil prices, the prices on other commodities reduced in the second quarter. For example, gas prices reduced by 13 percent, coal - by four percent.
At the same time, the bank expects the decline in energy prices by 39 percent compared to 2014.
"The oil demand in the second quarter exceeded expectations," John Baffes, WB senior economist, was quoted as saying. "However, big oil reserves and an increase in production in the OPEC member-states will lead to the low oil prices in the near future."
Lifting of sanctions against Iran may affect the decline in the "black gold" cost, the report said.