World Bank revises oil prices forecast for 2017

Baku. 21 October. REPORT.AZ/ World Bank (WB) raised its crude oil price forecast for 2017 from $53 to $55/barrel based on OPEC’s preparations to reduce production.

Report informs citing Bloomberg agency, this is noted in WB Commodity Markets Outlook. Slight increase in commodity prices is forecast in the report issued once in a quarter as demand is expected to strengthen and supply to tighten.

Energy prices, which include oil, natural gas and coal, are projected to jump almost 25 percent in 2017.

“We expect a solid rise in energy prices, led by oil, next year,” said John Baffes, Senior Economist and lead author of theCommodity Markets Outlook. “However, there is considerable uncertainty around the outlook as we await the details and the implementation of the OPEC agreement, which, if carried through, will undoubtedly impact oil markets.”

Metals and minerals prices are expected to rise 4.1 percent next year. Gold is projected to decline slightly next year to $1,219 per ounce from current $1,219 per ounce. Agriculture prices are expected to increase 1.4 percent in 2017 with steeper-than-anticipated 2.9 percent rise in grains prices.