Average price of oil will drop to $67 per barrel in 2019 - World Bank

Thu 10 Jan 2019 20:03 GMT | 00:03 Local Time

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The World Bank predicts a decline in the average price of oil in 2019 to $67 a barrel, the World Bank said in a report released on Tuesday, according to TASS.

The World Bank’s January 2019 World Economic Outlook is titled "Global Economic Prospects. Darkening Skies."

"Oil prices are projected to be flat, on average, during 2019-21, at $67 per barrel, potentially limiting fiscal and export revenue increases in oil-producing economies," the WB analysts say adding that the uncertainty of the forecasts is high.

"Oil prices averaged $68 per barrel (bbl) in 2018, a touch lower than June forecasts but about 30% higher than in 2017," according to the report.

By the average oil price, the WB implies the average price of Brent, Dubai and WTI blends. In June, the World Bank forecast the average price per barrel of oil in 2018 at $70, and in 2019 - $69.

According to the WB experts, this price of oil will remain over the next three years. In addition, the outlook for supply is uncertain and depends to a large extent on production decisions by OPEC and its non-OPEC partners, according to the report.

"Considerable uncertainty remains about the full impact of Iranian sanctions once the waivers end, as well as the outlook for Venezuelan production. Meanwhile, crude oil output in the United States is expected to rise by a further 1mln barrels per day in 2019, with capacity constraints envisioned to ease in the second half of the year as new pipelines come onstream," the WB says in the report.

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