Azernews.Az

The World Bank has lowered its 2015 forecast for crude oil prices from $57 per barrel to $52 per barrel.

The Bank predicts a further slowing in global economic performance, high current oil inventories, and expects that Iranian oil exports will rise after the lifting of international sanctions.

Energy prices are expected to average 43 percent lower in 2015 than in 2014, according to the WB experts.

This is while the World Bank has lowered the forecasts for oil prices for 2016 from $61 to $51 per barrel.

“Within several months, Iran could potentially reach a pre-sanctions level of 3.6 million barrels per day,” the report reads. “In addition, Iran could immediately begin exporting from its 40 million barrels of floating storage of oil.”

Moreover, the WB experts believe that downside risks in world oil prices include higher-than-expected OPEC production and continuing falling costs along with improved productivity of the US shale oil industry.

“The potential impact of Iranian oil and gas exports on global and regional markets could be large over the long term if Iran can attract the necessary foreign investment and technology to leverage its substantial reserves,” said Ayhan Kose, director of the World Bank’s Development Prospects Group.

Meanwhile, the price of oil continues to fall in the world markets. On the New York Stock Exchange NYMEX cost of the US Light crude oil decreased $0.40 to stand at $45.98. Price of British Brent crude oil at the London ICE fell $0.15 to trade at $48.55.

The price of a barrel of Azeri Light crude oil decreased $0.24 to stand at $49.97 on the world markets.

---

Follow us on Twitter @AzerNewsAz