The World Bank is forecasting higher prices for energy in 2017 and next year.

Its latest report forecasts crude oil price at $55 (£42.7) per barrel this year, increasing to an average of $60 (£46.6) per barrel in 2018.

It states rising oil prices, supported by production cutbacks by Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC states will allow markets to “gradually rebalance”.

The report adds: “These oil price forecasts are subject to downside risks should the rebound in the US shale oil industry be greater than expected.”

Prices for energy commodities, which include natural gas and coal, are projected to jump 26% this year and 8% in 2018.

In line with oil price forecasts, natural gas is anticipated to gain 15% this year, led by an increase in US prices.

Coal is forecast to rise 6% this year, due to earlier supply restrictions in China, which consumes half of the world’s output.