"Middle East Turmoil Threatens Record Oil Price Surge, World Bank Warns"

The World Bank has warned that oil prices could surge to a record $157 per barrel if the ongoing conflicts in the Middle East broaden and cause a significant disruption in the markets. In a scenario of a large disruption, global oil supply would decrease by 6 to 8 million barrels per day, leading to an initial price increase of 56% to 75% to between $140 and $157 per barrel. The report also outlines medium and small disruption scenarios with lower price ranges. The World Bank highlights that high oil prices would exacerbate food insecurity globally. Currently, crude oil is expected to average $90 per barrel in the current quarter before declining to an average of $81 per barrel in 2024.