The multi-lateral institution, which provides loans to developing countries, expects crude oil prices to average US$41 a barrel this year, compared with a previous forecast for US$37.
The World Bank on Tuesday raised its forecast for crude oil prices by about 11%, citing expectations for a reduction in the global supply glut.
The multi-lateral institution, which provides loans to developing countries, expects crude oil prices to average US$41 a barrel this year, compared with a previous forecast for US$37.
The multi-lateral institution, which provides loans to developing countries, expects crude oil prices to average US$41 a barrel this year, compared with a previous forecast for US$37.
The estimate for this year still marks a decline of 19% from last year.
Oversupply in the global crude oil market is expected to recede, according to the quarterly Commodity Markets Outlook report.
The World Bank forecast is an average of Brent West Texas Intermediate (WTI) and Dubai crudes.
The market surplus is likely to continue in the first half of the year because of weak seasonal demand, but in the second half of the year, stockpiles are set to decline as refinery demand increases and US production declines steepen, according to the World Bank.
Output from the Organization of the Petroleum Exporting Countries (OPEC), excluding Iran, is expected to remain flat, the World Bank said. But Iranian production is forecast higher by some 500,000 barrels per day.
In the US, output saw a year-on-year decline in December, the first material drop in nearly 10 years, the World Bank said.
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