The World Bank says crude oil prices may reach US$43 per barrel this year.

The Washington-based lender on Tuesday revised up its previous forecast, citing supply disruptions and strong demand.

Oil prices rallied 37 percent in the second quarter on the back of Canadian wildfires and oil infrastructure damage in Nigeria.

The World Bank also said the oversupply will diminish as prices rise in the second half of the year.

Still, the World Bank says energy prices as a whole, including oil, natural gas and coal are expected to fall this year, but the drop will be smaller than its earlier forecast.