Oil prices could go down on slowing global economy | Inquirer Business
WORLD BANK FORECAST

Oil prices could go down on slowing global economy

/ 04:06 AM November 04, 2019

The sluggish growth of the global economy is expected to keep crude oil prices stable at their current level this year and weaker next year, according to the latest forecast from the World Bank.

Data from the October issue of the multilateral lender’s Commodity Markets Outlook showed the latest forecasts put Brent crude prices—the global benchmark—at an average of $60 per barrel in 2019, which was lower by $6 than the outlook provided in April.

ADVERTISEMENT

For 2020, the forecast is $58 per barrel, which is $7 lower than the outlook six months ago.

“In line with the slowdown in global growth, oil consumption is now expected to rise at a much slower pace than earlier forecasts and increase only modestly next year,” the World Bank said.

FEATURED STORIES

“A sharper-than-expected economic downturn poses the greatest risk to the oil price forecast,” it added.

The report also noted the negative impact of the attacks against oil production facilities in Saudi Arabia in September was “short-lived by historical standards” because of the swift restoration of production, increasingly diversified sources of oil supplies, including shale oil, and weakening demand.

“However, it was a reminder that the global oil market remains dependent on several critical infrastructure and transport bottlenecks that may be vulnerable to disruption,” the bank said.

Brent crude prices averaged $71.10 per barrel in 2018, up from $54.40 per barrel in 2017. Dubai crude, the benchmark for Asia, averaged $68.2 per barrel in 2018, also up from $53.10 per barrel in 2017.

In the Philippines, pump prices of diesel went up P3.05 per liter, mostly representing the excise and value added tax at P2.80 per liter.

Similarly, pump prices of gasoline went up by P1.77 per liter. Without the additional taxes of P2.97 per liter, gasoline prices would have gone down by P1.20 per liter.

So far this year, diesel prices have gone up by a total of P6.14 per liter, and gasoline by P7.39 per liter. —RONNEL W. DOMINGO

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: economy, oil price
For feedback, complaints, or inquiries, contact us.
Your subscription could not be saved. Please try again.
Your subscription has been successful.

Curated business news

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.



© Copyright 1997-2023 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.