Kampala, Uganda | THE INDEPENDENT | Oil prices are forecast to rise to $56 a barrel in 2018 from $53 this year as a result of steadily growing demand, agreed production cuts among oil exporters and stabilizing United States shale oil production, according to the World Bank’s Senior Economist John Baffes.
Baffes, the lead author of the Commodity Markets Outlook said, ‘Energy prices are recovering in response to steady demand and falling stocks but much depends on whether oil producers seek to extend production cuts.”
Prices for energy commodities – which include oil, natural gas, and coal — are forecast to climb 4 % in 2018 after a 28 % leap this year.
This new oil price forecast is a small downward revision from the April outlook and is subject to risks.
The prospective surge in oil prices gives hope to new countries currently developing their oil and gas sector including Uganda. Uganda plans to start oil production by 2020.