TEMPO.CO, Jakarta - The World Bank forecasted in its latest report on Thursday, October 20, 2016, that global oil price in 2017 will reach up to US$55 per barrel as members of the Organization of Petroleum Exporting Countries (OPEC) prepares to limit production capacity. The prediction was higher compared to an earlier forecast made in July 2016, which expects oil price to be at US$53 per barrel.
"We expect a solid rise in energy prices, led by oil, next year," said John Baffes, the lead author of the report titled 'Commodity Markets Outlook'.
The report stated that OPEC's capability to influence global oil price will be challenged with by expansion of supplies originated from non-conventional sources, including the United States shale oil industries.
OPEC announced on late September 2016 that it plans to cut down production to 32.50 million barrels per day from the current 33.24 million barrels per day. Details of the plan is said to be discussed by OPEC state members on November 2016 in Vienna.
The report predicted that energy prices, including oil, natural gas, and coal will increase by almost 25 percent next year. Meanwhile, prices of metal and mineral products, and agriculture products are predicted to increase by 4.1 and 1.4 percent, respectively.
"Low commodity prices hit commodity-exporting emerging and developing economies hard but now appear to have bottomed out," said Ayhan Kose, Director of the World Bank's Development Prospects Group in the report.
ANTARA
