The World Bank expects the oil price to rise to $44 per barrel in 2021 and to $50 in 2022, the organization said in its latest Russia Economic Report on Wednesday.
"Oil prices are forecast to increase to $44/bbl in 2021 and $50/bbl in 2022 from a projected $41/bbl in 2020," the report said.
The WB’s experts consider the duration and severity of the pandemic in the future, including the speed at which a vaccine deemed safe and effective is developed and distributed, to be the main risks to the price forecast, TASS reports.
"A further rise in infection rates resulting in more stringent lockdowns and reduced travel will affect oil demand significantly more than other commodities. On the other hand, if a vaccine is developed and distributed more rapidly than currently anticipated, oil consumption could see a stronger recovery in 2021," according to the report.
The pandemic is anticipated to have a prolonged impact on oil consumption, which is expected to remain 5% below its pre-pandemic levels by the end of 2021, the World Bank noted.