On January 26, World announced it has lowered its forecast for the average price of oil for 2016 to $37 a barrel, against $51 last October.

In its annual commodities market outlook published on January 26, the institution said the scale-down was due to a “faster than expected” export of Iran oil which restarted after lifting of sanctions and which should boost world’s supply which is already in excess. It also said the fact that winter was not so harsh in Northern hemisphere, and the weak perspectives for growth in emerging market economies participated to the decrease of crude’s price.

Recalling that oil price slumped 47% in 2015, World Bank said it was expecting another drop, 27%, this year before a slight rebound in 2017.

For non-energetic commodities, the institution forecast for the year, an average drop in prices, -3.7%. This fall will be more significant for precious metals (-8%) and grains (-3.4%).