The International Monetary Fund reported that oil prices are still only about three percent higher than the levels on which it based its basic global growth forecast issued in April, but it pointed to continued price volatility in the spot market and a decline in global reserves.
Brent crude futures prices declined over the past few days, recording about $86.18 per barrel today, Thursday.
The Fund’s forecast for global economic growth of 3.1 percent was based on the average oil price of $82.22 per barrel.
These forecasts, which were issued after a sharp jump in prices during March, came on the assumption of a quick end to the conflict in the Middle East.
Fund spokeswoman Julie Kozak said during a regular press conference that the stability of oil prices depends on the reopening of the Strait of Hormuz.
