13 minutes agoWorld Bank: Oil prices will drop during 2019-2020
Periskopi(7 years ago)
(7 years ago)The World Bank revised global oil prices by 2019 and 2020, respectively, by -3.4 and -1.5 percent in the periodical report on the expectations of major goods prices published these days. Oil prices are expected to be an average of $66 per barrel in 2019 and $65 in 2020, these values [...]
Oil prices are expected to be an average of $66 per barrel in 2019 and $65 in 2020, these assets are $8 and $4, respectively, lower than the autumn forecasts the World Bank published during October 2018.
The declining revisions reflect the findings for weaker growth for the global economy this year.
The forecast assumes that cutting production by the OPEC and other production partners will be absorbed by the lowest global demand, particularly India, China, the United States, and environmental policies that will curb consumption.
Global oil production dropped significantly in the first quarter of 2019, after a major increase in the second half of 2018. The OPEC and its partners significantly reduced production, while production declined significantly in Iran and Venezuela. U.S. oil production rose at the fastest rate ever recorded in 2018, contributing to a sharp increase in exports.
While global growth in 2019 is expected to be weaker than the preliminary forecast, although weakness will be temporary. After 2020, increase in oil consumption from O The ECD will be insignificant according to the International Energy Agency (IEA).
Environmental policy efficiency will reduce oil consumption, especially in the transport sector, while increasing consumption from non-states. O The ECD is expected on average about 2 percent per year for the next five years.
Global oil production fell in the first quarter of 2019, following an increase in the previous quarter.
While the OPEC and its partners are expected to decide whether to extend deadlines to keep production in check at the June meeting. But the restrictions on the movement of vehicles to the large city are enormizing the effects of lower production.
Unlike oil, metal prices are expected to rise in 2019 and 2020 after a sharp decline in the second half of 2018.
Farm prices are expected to drop by 2.6 percent in 2019 because of high stock stocks. In 2020, prices are expected to rise by 1.7 percent as a result of the US crop reduction and higher costs of energy and waste.
