Brent crude price to average $64 per barrel in 2025, $60 in 2026 - World Bank
The World Bank expects prices of Brent crude oil to average 64 dollars a barrel this year and 60 dollars in 2026. The Bretton Woods institution notes the outlook reflects expectations for weaker economic growth, long-term slowdown in global oil demand. Rhode Luemba, Head of Flow Sales, Global Markets at Standard Bank Group joins CNBC Africa for more on the impact of lower oil prices for commodity exporters Nigeria and Angola.
Tue, 29 Apr 2025 15:29:16 GMT
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AI Generated Summary
- The World Bank predicts a decline in Brent crude prices, with implications for commodity exporters like Nigeria and Angola.
- Economies must be prepared for challenges posed by lower oil prices, stressing the importance of strategic planning and adjustments.
- Recommendations include restoring fiscal discipline, attracting private capital, liberalizing trade, and diversifying economies to build resilience.
The World Bank has released a bleak outlook for commodity prices, particularly crude oil, with expectations of Brent crude oil averaging $64 per barrel in 2025 and dropping further to $60 in 2026. The institution attributes this forecast to weaker economic growth and a long-term slowdown in global oil demand. Rhode Luemba, Head of Flow Sales, Global Markets at Standard Bank Group, discussed the implications of lower oil prices for commodity exporters like Nigeria and Angola in a recent interview on CNBC Africa. Luemba emphasized the need for governments and economies to be prepared for the challenges posed by declining oil prices. He highlighted the importance of stress testing worst-case scenarios and making strategic adjustments to mitigate the impact. The global growth forecast has been halved to 1.7% for 2025, signaling a challenging economic landscape. Economies heavily reliant on oil exports, such as Nigeria and Angola, face significant uncertainties amidst elevated global risks and lower crude oil prices. The World Bank recommends three key steps for these countries: restoring fiscal discipline, creating a more business-friendly environment to attract private capital, and liberalizing trade where opportunities exist. Luemba stressed the importance of diversification and enabling private sector-led growth to build resilience in the face of volatile oil markets and shrinking global growth. As OPEC+ navigates the current economic trends, unity among member countries and compliance with production cuts will be crucial to stabilize oil prices and manage demand amidst softer global economic growth. Luemba highlighted the risks posed by external factors such as fluctuating demand from major consumers like China and increased oil production from countries like the United States. Overall, the challenges posed by declining oil prices underscore the need for proactive measures and strategic planning to safeguard the economies of commodity-exporting nations.
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