The World Bank has projected that crude oil prices would average $52-$53 per barrel (bbl) this year- an increase of 24 percent over 2016, owing largely to stronger demands and controlled supply by OPEC.
The Bretton Woods institution which gave the forecast in its October 2017 issue of Africa’s Pulse, one of its publications, noted that while the prices of crude oil had been under downward pressure throughout the year, the prices had recovered.
According to the bank, “After dropping to $46 per barrel (bbl) in mid-year amid a rebound in US crude oil production, crude oil prices have recovered. Crude oil prices rose in the third quarter owing to
strong demand and improved compliance by Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC producers with production agreements.
The World Bank explained that for the next year and beyond, the oil price path will reflect the pace of demand, the degree of decline of stocks, and production restraint among OPEC and non-OPEC producers. It, however, indicated that the global market was unlikely to tighten significantly because of large projected increases in US shale production