The year-on-year rise in oil prices will reach 70 percent

The recent sharp rise in global oil prices could jeopardize economic growth and is unlikely to moderate before 2023. The World Bank (WB) said in a report on Thursday. Based on the latest survey, the bank expects average oil prices to reach around USD 70 (EUR 60.15) per barrel at the end of the year, which will be 70 percent more than in 2020. According to the SB, this development in the oil market is pushing up prices of other energy, such as natural gas. "The sudden rise in energy prices poses significant short-term risks to global inflation and, if maintained, could also affect economic growth in energy-importing countries," said World Bank Chief Economist Ayhan Kose. He noted that the increase was "more pronounced than originally expected" and "may complicate political decisions at a time when states are recovering from last year's global recession" due to the new coronavirus pandemic. Oil prices have climbed above $ 80 a barrel in recent weeks (1 barrel = 159 liters), a multi-year high. This was helped by the reopening of economies after the pandemic and the reduction in mining agreed by the world's largest producers last year. The World Bank uses the average of the prices of the Brent oil mixture, the American West Texas Intermediate and Dubai oil. And he predicts that commodity prices "will remain high in 2022, but will start to fall in the second half of the year as supply-side constraints ease." The bank estimates that average oil prices will reach USD 74 / barrel in 2022 and fall to USD 65 per barrel in 2023. At the same time, however, it warns that "prices may increase in the near future due to very low stocks and persistent limited supply to markets".