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World Bank revised down forecasts for oil prices

11 January 2023 15:33 (UTC +04:00)

The World Bank has said that the global economy is set for a sharp downturn this year, with growth nearly halving and the slowdown affecting all regions, APA reports citing thenationalnews.com.

The EIA expects Brent to average $83 a barrel in 2023 before falling to $78 a barrel next year as global oil inventories build.

Global growth is projected to decline to 1.7 per cent in 2023, from the 3 per cent forecast six months ago, the Washington-based lender said in its latest Global Economic Prospects report released on Tuesday.

The World Bank forecasts oil prices at $88 a barrel in 2023 and $80 a barrel in 2024.

“The oil market is digesting a global slowdown that might not be as bad as feared,” said Edward Moya, senior market analyst at Oanda.

“Energy traders still believe that the Opec+ will do whatever is needed to keep prices supported and that includes more production cuts this quarter.”