The International Monetary Fund (IMF) estimated that average annual oil prices would be $50.3 a barrel in 2021 - a decrease of 20% from the 2020 average.
In its latest World Economic Outlook released on Tuesday, the IMF said oil prices averaged $41.29 per barrel in 2020 and, despite the estimated increase in 2021, prices are expected to still be well below the average in 2019.
The IMF had projected that oil prices would average $46.7 a barrel in 2021 in its outlook report in October.
It forecast that the global economy would grow 5.5% in 2021 and 4.2% in 2022 amid exceptional uncertainty.
'Although recent vaccine approvals have raised hopes of a turnaround in the pandemic later this year, renewed waves and new variants of the virus pose concerns for the outlook,' it said.
The IMF also revised its 2021 forecast up to 0.3 percentage point relative to the previous forecast, 'reflecting expectations of a vaccine-powered strengthening of activity later in the year and additional policy support in a few large economies.'
By Sibel Morrow