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World Bank: Oil prices to remain below $60/bbl through 2016

by ChemOrbis Editorial Team - content@chemorbis.com
  • 23/01/2015 (14:24)
According to the World Bank’s quarterly Commodity Markets Outlook, the Bank expects prices for oil to remain below the $60/barrel threshold through 2016. The Bank predicted that oil prices would average $53/barrel in 2015 and $57/barrel in 2016 assuming no deterioration in the global macroeconomic environment and that OPEC would continue to refrain from engaging in supply management.

The Bank pointed to a stronger US dollar, rising supply levels, disappointing economic growth and OPEC’s decision to follow market pricing as the main factors weighing down on oil prices. The report added that at least a year would be needed before unconventional oil sources whose extraction costs are above current market prices to disappear from the market and that most of the curtailment in supply would come through the cancellation of projects.

The report also stated that the International Energy Agency (IEA) predicts that oil consumption will average 93.3 million barrels per day in 2015, down from the average of 94.1 million barrels per day estimated by the IEA in July 2014.
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