World bank lowers crude oil price forecast for 2016
The fall in the forecast is being accounted to resumption of oil exports by Iran. Oil prices are currently at a low of $30-$28 this month, last seen in 2003.
- Jan 28, 2016,
- Updated Jan 28, 2016 3:21 PM IST
Amid the crisis of tumbling gloabl oil prices, the World Bank has further reduced the forecast for 2016.
In its Commodity Markets Outlook report released on Wednesday, the World Bank has lowered the forecast of crude oil prices by 27 per cent to $37 per barrel. It had earlier given a forecast of $51 per barrel for oil for 2016 in its October report.
The fall in the forecast lately is being accounted to resumption of oil exports by Iran. Oil prices are currently at a low of $30-$28 this month, last seen in 2003. In 2015 alone, the oil prices fell by 47 per cent.
The news may sound good for India as its import bills of oil will reduce further. India has to import most of the oil it requires for consumption and is the fourth largest importer after United States, China, and Japan. The report reiterates its faith in India's growth story.
"In contrast to the other four BRICS, growth in India remained robust, buoyed by strong investor sentiment and the positive effect on real incomes of falling oil prices," the World Bank said.
Of the five BRICS (Brazil, China, India, Russia, and South Africa) four economies contracted in the year 2015, it said.
The report says that slowdown in emerging economies like China can lead to a fall in commodity prices and hurt the commodity exporter nations along with the global economy.
Beyond oil, prices of 37 of the 46 commodities have been revised with a lower forecast in the World Bank's latest report.
Amid the crisis of tumbling gloabl oil prices, the World Bank has further reduced the forecast for 2016.
In its Commodity Markets Outlook report released on Wednesday, the World Bank has lowered the forecast of crude oil prices by 27 per cent to $37 per barrel. It had earlier given a forecast of $51 per barrel for oil for 2016 in its October report.
The fall in the forecast lately is being accounted to resumption of oil exports by Iran. Oil prices are currently at a low of $30-$28 this month, last seen in 2003. In 2015 alone, the oil prices fell by 47 per cent.
The news may sound good for India as its import bills of oil will reduce further. India has to import most of the oil it requires for consumption and is the fourth largest importer after United States, China, and Japan. The report reiterates its faith in India's growth story.
"In contrast to the other four BRICS, growth in India remained robust, buoyed by strong investor sentiment and the positive effect on real incomes of falling oil prices," the World Bank said.
Of the five BRICS (Brazil, China, India, Russia, and South Africa) four economies contracted in the year 2015, it said.
The report says that slowdown in emerging economies like China can lead to a fall in commodity prices and hurt the commodity exporter nations along with the global economy.
Beyond oil, prices of 37 of the 46 commodities have been revised with a lower forecast in the World Bank's latest report.