Oil prices expected to rise above current levels in 2019
By Trend
Energy prices gained 3 percent in 2018 (q/q), partly in response to the impending re-imposition of sanctions on Iran by the United States along with continuing declines in production in Venezuela, John Baffes, Senior Economist with the World Bank's Development Prospects Group said in his article.
Oil prices are expected to remain near their current levels—averaging $72 per barrel in 2018 and $74 per barrel in 2019, said Baffes.
He pointed out that the World Bank Energy Price Index rose by 3 percent in the third quarter of 2018 (q/q) and is more than 40 percent higher than the same period in 2017, with strong gains across oil, coal and natural gas.
"For crude oil, prices have been supported by a combination of robust demand and several supply concerns. Production continues to decline in Venezuela, while the impact of U.S. sanctions on Iranian oil exports is expected to be larger than in 2012," the author believes.