New Economy Forum
World Bank Sees Slow Commodities Recovery After Virus Hit
- Oil prices stall more than 30% below pre-pandemic levels
- Modest gains projected in metals, agriculture prices
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Oil demand could see “lasting impacts” from the coronavirus while modest gains are projected in metals and agriculture prices as commodity markets recover from the shock of the pandemic, according to the World Bank.
The World Bank boosted its projections from April for the average oil price in 2020 and 2021 to $41 a barrel and $44, respectively, as a slow recovery in demand is matched by an easing in supply restrictions. That still leaves prices well below 2019 levels of $61. Outside of energy, a small decline in metal prices will be offset by an increase in agricultural prices this year.