News Digest:

Global commodity prices could experience a slight downturn in 2024 and 2025 but these declines would still hold them well above their pre-pandemic levels, according to a blog post by the World Bank.

The report expects energy prices to drop by 3% in 2024 with lower prices of natural gas and coal offsetting higher oil prices. This trend could continue in 2025, the report said adding that agriculture prices would also ease over the next two years amidst improved supplies. On the other hand, metal prices would rule steady in 2025 and rise marginally in 2025.

Takeaway:

These forecasts assume no further escalations in the geopolitical conflicts, the report notes while highlighting a 3% fall in commodity prices during the first quarter of 2024. These were driven by lower energy prices and relatively stable agriculture and metal prices. Oil prices were significantly volatile during this period, responding to escalating tensions in the Middle East and an anticipated tighter supply scenario.

End Notes

Source: https://blogs.worldbank.org/en/developmenttalk/the-commodity-markets-outlook-in-eight-charts