Crude oil in 2016 is projected to come in at USD 37 a barrel, down from its October estimate of  SD 51, the World Bank said in a new quarterly report.

"A faster-than-expected slowdown in major emerging markets economies - especially if combined with financial stress - could further reduce commodity prices considerably, setting back growth in commodity exporters and the global economy," it said in the Commodity Markets Outlook report.

Oil prices fell below USD 30 a barrel in mid-January to lows last seen more than 12 years ago amid a global oversupply and weakening demand.

The World Bank recently downgraded the growth projections for emerging-market and developing economies, after they slowed to a 3.3 percent pace last year, their weakest showing since 2010.

Emerging-market economies have been the main drivers of commodity demand growth since 2000, a reason why their weakening growth prospects are weighing on commodity prices, the World Bank said.

The World Bank explained its stiff 27.5 percent downgrade on 2016 oil prices reflects a number of supply and demand factors that emerged in the past three months.

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