Energy prises to surge by 2023

The sluggish economic growth across the world and the unceasing COVID restrictions in China, together are expected to pull down the currently rising energy prices. According to the World Bank, energy prices are expected to come down by 11% in 2023. The bank, however, has anticipated a surge of 60% in crude oil prices (following the Russia’s invasion of Ukraine) in 2022.

In its recent Commodity Markets Outlook, the World Bank has predicted the Brent crude average price to be at US$ 92 per barrel in 2023, dropping down further to US$ 80 in 2024. However despite the decline, crude oil prices will still remain above the five-year average of US$ 60, the bank said.

The World Bank has also projected a decline in Russian oil exports by around 2 million barrels per day because of the European Union’s checks and restrictions on ‘insurance and shipping’.