World Banks forecasts 11% decline in energy prices in 2023

27 Oct 2022 , 07:39 AM

The World Bank predicted on Wednesday that after rising by 60% in 2022, energy prices will fall by 11% in 2023, with weaker global growth and continued COVID limitations in China representing the main downside risks.

The bank predicted that the average price of Brent crude would be $92 per barrel in 2023, dropping to $80 in 2024, but remaining significantly higher than the $60 average over the previous five years.

According to the report, a European Union embargo and limitations on insurance and transportation may cause Russia’s oil shipments to decline by as much as 2 million barrels per day.

However, it added that in order to be effective, a proposed oil price ceiling by the Group of Seven requires the cooperation of significant emerging markets and developing economies.

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