“We expect a solid rise in energy prices, led by oil, next year”
-John Baffes, Senior Economist and lead author of the Commodity Markets Outlook.
The World Bank has recently raised their mark for crude oil prices in 2017 to $55/barrel, up from the $53 predicted earlier in the year. The primary driver of this rise is, of course, the potential for a meaningful OPEC deal in November.
“However,” as Baffes went on to say, “there is considerable uncertainty around the outlook as we await the details and the implementation of the OPEC agreement.” Even though he nods to the volatility we’ve seen in the wake of the announcement following the OPEC talks in Algiers, it’s still telling that despite this, Baffes keeps faith in the potential efficacy of the deal, saying that “if carried through, [it] will undoubtedly impact oil markets.”