The World Bank on Wednesday said it expects energy prices to decline 11% in 2023 after a 60% surge in 2022, with slower global growth and continued COVID restrictions in China posing key downside risks.
The bank in its latest Commodity Markets Outlook projected a Brent crude average price of $92 a barrel in 2023, easing to $80 in 2024 but well above the five-year average of $60.
It said Russia’s oil exports could drop by as much as 2 million barrels per day due to a European Union embargo and restrictions on insurance and shipping.
A proposed Group of Seven oil price cap could affect the flow of oil from Russia, but needed the participation of large emerging market, developing economies to be effective, it said.
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