World Bank: Oil prices won’t decline until 2023

In its latest Commodity Markets Outlook report released over the weekend, the World Bank warned that the recent surge in oil price is unlikely to reverse until 2023.

Key takeaways

“Average crude prices are expected to end the year at US$70 a barrel, 70 percent higher than in 2020.”

“The surge in energy prices poses significant near-term risks to global inflation and, if sustained, could also weigh on growth in energy-importing countries.”

“The World Bank uses an average of Brent, WTI and Dubai crude which it said will ‘remain at high levels in 2022 but will start to decline in the second half of the year as supply constraints ease’.”

“Additional price spikes may occur in the near-term amid very low inventories and persistent supply bottlenecks.”

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