Global oil prices are expected to reach $73 per barrel by 2019, the International Monetary Fund (IMF) said in a report released Tuesday.
“Prices are expected to remain well below the October 2014 WEO baseline into the medium term (for instance, projected prices for 2019 declined from $93 to $73 a barrel),” the IMF’s World Economic Outlook said.
According to the IMF, oil futures prices are indicative of a partial recovery in crude prices in the coming years, but the level of uncertainty about the future trajectory of oil prices has increased, Sputnik reported.
Earlier on Tuesday, the World Trade Organization (WTO) projected that the price of oil would be $60 per barrel in 2015 and $70 per barrel in 2016.
Global oil prices have dropped by nearly 50 percent since summer 2014, damaging economies reliant on energy exports. In November 2014, the Organization of Petroleum Exporting Countries (OPEC) decided not to reduce oil output levels, which prompted an even greater slump in prices. The West Texas Intermediate crude stands at around $52, while Brent is about $58.
The IMF also cut its forecast for regional growth this year amid lower oil prices and faltering trade flows. It expects the Middle East, North Africa, Afghanistan and Pakistan to grow by 2.9 percent this year, down from its earlier prediction of 3.3 percent. “Oil price declines will sharply slow growth for oil exporters, especially those that also face difficult initial conditions,” said Olivier Blanchard, chief economist at the IMF.
