The Washington-based World Bank has raised its 2016 average oil price forecast to $43 a barrel, from $41.

This is due to supply outages in Canada and Nigeria, as well as robust demand in the second quarter.

Oil prices increased 37 per cent over the second quarter of 2016, and are up significantly from lows below $30 a barrel in January. A recent softening of demand, and the return of some of the disrupted producers mean oil prices are expected to remain below the June high of $53 a barrel.

“We expect slightly higher oil prices for the second half of 2016 as oil market oversupply diminishes,” said John Baffes, World Bank senior economist and lead author of the Commodities Markets Outlook, in a press release. “However, inventories remain very large and will take some time to be drawn down.”

Most commodity prices are expected to decline in 2016 due to high levels of supply and weaker growth in emerging and developing markets, although the decline will be less than earlier predicted.

The new World Bank report predicts energy prices, including oil, natural gas and coal, will decline 16.4 per cent in 2016. Metals and minerals, agriculture, and fertilizers, are forecast to slip 3.7 per cent this year. Metals prices will be most affected, projected to decline 11 percent in 2016, on weak demand and new production capacity.