The International Monetary Fund (IMF) forecasts price of a barrel of oil will go down this year by 16.2%, to $81.13, according to the IMF’s World Economic Outlook update.
"In 2023, oil prices are projected to fall by about 16%, while nonfuel commodity prices are expected to fall by, on average, 6.3% ," the report said.
"The average assumed price of oil in US dollars a barrel, based on futures markets (as of November 29, 2022), is $81.13 in 2023 and $75.36 in 2024," the report pointed out. Thus, the price of oil will decrease by 7.1% next year.
According to the IMF, "energy markets have adjusted faster than expected to the shock" caused by the conflict in Ukraine. Nevertheless, "surge in global energy and food prices triggered a cost-of-living crisis " last year. According to the fund, higher-than-expected oil, gas and food prices due to the conflict in Ukraine may once again increase overall inflation.
