Nigeria, Iraq disruptions send crude prices upwards •As World Bank raises crude oil forecast for 2016 to $41/barrel

by **RamblerNash** Thu May 05, 2016 12:21 am

Nigeria, Iraq disruptions send crude prices upwards •As World Bank raises crude oil forecast for 2016 to $41/barrel

April 26, 2016

Written by:
Sanya Adejokun -Abuja

Disruptions in crude oil production in Nigeria and Iraq are among recent developments in the industry that have shot global prices from around $25 to $40 per barrel according to new figures from the World Bank.

The bank, which also cited improving market sentiment and a weakening dollar, has thus raised its 2016 forecast for crude oil prices to $41 per barrel from $37 per barrel in its latest Commodity Markets Outlook, as an oversupply in markets is expected to recede.

Crude oil market rebounded from a low of $25 per barrel in mid-January to $40 per barrel in April following production disruptions in Iraq and Nigeria and a decline in non-Organisation of the Petroleum Exporting Countries production, mainly United States shale. A proposed production freeze by major producers failed to materialise at a meeting in mid-April.

“We expect slightly higher prices for energy commodities over the course of the year as markets rebalance after a period of oversupply,” said John Baffes, Senior Economist and lead author of the Commodities Markets Outlook. “Still, energy prices could fall further if OPEC increases production significantly and non-OPEC production does not fall as fast as expected,” David Theis, a Manager at the Bank said in a statement.

All main commodity indexes tracked by the World Bank are expected to decline in 2016 from the year before due to persistently elevated supplies, and in the case of industrial commodities, which include energy, metals, and agricultural raw materials, weak growth prospects in emerging market and developing economies.

Energy prices, including oil, natural gas and coal, are due to fall 19.3 per cent in 2016 from the previous year, a more gradual drop than the 24.7 per cent slide forecast in January. Non-energy commodities, such as metals and minerals, agriculture, and fertilisers, are due to decline 5.1 per cent this year, a downward revision from the 3.7 per cent drop forecast in January.

http://tribuneonlineng.com/nigeria-iraq-disruptions-send-crude-prices-upwards-%E2%80%A2as-world-bank-raises-crude-oil-forecast-for-2016

by **Ponee** Thu May 05, 2016 8:55 am

Nigeria, Iraq disruptions send crude prices upwards •As World Bank raises crude oil forecast for 2016 to $41/barrel

Nigeria, Iraq disruptions send crude prices upwards •As World Bank raises crude oil forecast for 2016 to $41/barrel

Nigeria, Iraq disruptions send crude prices upwards •As World Bank raises crude oil forecast for 2016 to $41/barrel

Re: Nigeria, Iraq disruptions send crude prices upwards •As World Bank raises crude oil forecast for 2016 to $41/barrel