| International oil prices are likely to decline slowly between now and 2025 to $80/barrel, a level consistent with the real cost of producing oil from Canada's tar sands, the World Bank said Wednesday in its Global Economic Prospects report.
But the bank also warned that a major oil supply disruption caused by political turmoil in the Middle East could send prices spiking by $50/b or more. The World Bank, which uses a simple average of Dubai, Brent and West Texas Intermediate crudes, expects the oil price to decline to $102.40/b this year and to $101/b in 2014 and 2015 from $105/b in 2012. It currently bases its long-term oil price assumptions on an estimated $80/b for Canadian oil sands output...............................................Full Article: Source
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