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World Bank Cuts 2016 Oil Forecast

International News

Oil Prices on Tailspin www.purnartha.comWith global crude oil prices in free fall through most of 2015, the World Bank has sharply revised downwards its forecast for oil price in 2016, at an average of $37 a barrel from $51 predicted in October, in the context of the continuing supply glut and low demand prospects from emerging economies. In this regard, the bank also scaled down its growth forecast for emerging and developing economies to 4 per cent in 2016, from an expected 4.6 per cent previously, and said the prediction was “subject to considerable downside risks in a fragile global environment”. Explaining that the lower forecast reflects various supply and demand factors, the World Bank said “these include sooner-than-anticipated resumption of exports by Iran, greater resilience in US production due to cost cuts and efficiency gains, a mild winter in the Northern Hemisphere, and weak growth prospects in major emerging market economies”.