World Bank Raises Oil Forecast

The World Bank has upped its oil price forecast for 2015, but the marginal rebound in the price of Brent crude at the start of the year won’t pull energy prices up to anywhere near 2014 levels, the international body said on Wednesday.

Crude oil is now expected to average $57 per barrel for the year—up from the World’s Bank’s estimate of $53 per barrel back in April. Geopolitical tensions and more closures of high-cost oils rigs could push the forecast even higher, the bank added in its “Commodity Markets Outlook” report.

This follows a greater-than-expected 17 percent rise in crude prices in the second quarter, even as prices for other energy commodities, such as natural gas and coal, declined, the World Bank said. In general, commodities, including metals and agricultural products declined between April and June.