World Bank oil prices downward revision
WASHINGTON, USA – Crude oil prices are expected to average $66 a barrel in 2019 and $65 a barrel in 2020, a downward revision from the October forecast due to the weaker than expected global growth outlook and greater than anticipated US production, the World Bank said in its April commodity markets outlook.
Metal prices are expected to continue a recovery in 2019 that follows a sharp drop in the second half of 2018. The stabilisation of activity in China has spurred the recovery after weakness around the turn of the year, as well as various supply shortfalls.
“It has become clear that the commodity price cycle has come to an end, which is causing strains for exporters but may offer opportunities for importers,” said Ceyla Pazarbasioglu, World Bank equitable growth, finance and institutions vice president.
“Exporters may have to adapt to slower gains in commodity revenues with economic diversification, while importers could take advantage of lower commodity prices for increased investment.”
Agriculture prices are projected to fall 2.6 percent this year but rebound in 2020 due to lower crop production and higher costs for energy and fertilisers. An escalation of trade tensions would likely push prices lower, but higher than expected energy costs could lift prices more than expected.
