World Bank raises 2016 oil price forecast to $41/barrel

The World Bank has raised its 2016 oil price forecast up from the previous level of $37 per barrel to a new height of $41.

The World Bank yesterday said the crude oil market rebounded to $40 per barrel in April following production disruptions in Iraq and Nigeria and a decline in non-Organisation of the Petroleum Exporting Countries (OPEC) production, mainly U.S. shale. The crude oil price at the international market according to the Central Bank of Nigeria (CBN) data yesterday was between $43 and $44 per barrel while Nigeria’s 2016 budget benchmark price estimate was fixed at $38 per barrel.

The World Bank explained that the review of the forecast followed improving market sentiment and a weakening dollar, declaring that its new 2016 forecast for crude oil prices is now $41 per barrel from $37 per barrel, pointing out that an oversupply in markets, is expected to recede.

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