"The World Bank is lowering its 2016 forecast for crude oil prices to $37 per barrel in its latest Commodity Markets Outlook report from $51 per barrel in its October projections," the release stated.
The World Bank explained that the projection has been lowered due to "sooner-than-anticipated" reintroduction of Iranian oil to the market, as well as greater resilience in US production. Weak growth prospects of the major emerging markets have also contributed to the new forecast, the bank added.
"Oil prices fell by 47 percent in 2015 and are expected to decline, on an annual average, by another 27 percent in 2016," the release said.
The World Bank noted, however, that it expects a gradual recovery of oil prices this year, since the demand will likely strengthen.
