Baku, Azerbaijan, Oct.9
By Leman Zeynalova – Trend:
Oil prices are expected to average $69.38 a barrel in 2018, the International Monetary Fund (IMF) said in its October World Economic Outlook (WEO).
This is higher than the April 2018 WEO projection of $62.30 and the 2017 price of $52.80 a barrel.
This is while global oil supply is expected to gradually increase over the forecast horizon, lowering oil prices to $68.76 a barrel in 2019, and further to about $60 a barrel in 2023.
“Despite their recent recovery, oil prices are projected to remain below the 2013 peak. Boosting non-oil revenues and continuing fiscal consolidation plans remain key goals for oil exporters,” said the report.
Oil prices rose to more than $76 a barrel in June— the highest level since November 2014—reflecting the collapse in Venezuela’s production, unexpected outages in Canada and Libya, and expectations of lower Iranian exports following US sanctions, according to IMF estimations.
Prices dropped to about $71 a barrel by August following a decision by the Organization of the Petroleum Exporting Countries (OPEC) and the non-OPEC oil exporters (including Russia) to increase oil production, said the report.
Moreover, the coal price index—an average of Australian and South African prices—increased 9.8 percent from February 2018 to August 2018, reflecting tight supply conditions, said the IMF.
Strong demand for liquefied natural gas in China and India as well as higher oil prices kept the spot price for liquefied natural gas close to its highest level in three years, according to the report.
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