×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: world bank | outlook | oil | metals | coronavirus | demand

World Bank Slashes Outlook for Oil, Metals as Coronavirus Crushes Demand

World Bank Slashes Outlook for Oil, Metals as Coronavirus Crushes Demand
(Dollar Photo Club)

Thursday, 23 April 2020 10:56 AM EDT

The World Bank slashed its outlook for oil and metals prices on Thursday due to the economic fallout of the coronavirus pandemic and said the commodity market shock could hit developing countries hardest.

Crude oil prices are expected to average $35 a barrel this year, down 43% from the average in 2019, the World Bank said, marking a sharp downward revision from its October forecast.

“The downward revision reflects an historically large drop in demand,” the World Bank said in a press release. It said overproduction from OPEC and other major world oil producers was exacerbating the price decline.

Metals prices, meanwhile, are seen dropping 13% overall this year, the World Bank said. But gold, a traditional safe-haven investment, is seen up nearly 15%.

It added that the impact of the health crisis on agricultural commodity prices is expected to be moderate, but that supply chain disruptions could raise the food security risk in some places.

“This enormous shock to commodity markets and low oil prices could deliver a serious setback to developing economies,” said Makhtar Diop, World Bank Vice President for Infrastructure, in the press release.

The organization recommended that world governments reform energy subsidy programs to free up funds for emergency coronavirus response, and advised against the use of tariffs or other trade protections to shield domestic industries. 

© 2024 Thomson/Reuters. All rights reserved.


Markets
The World Bank slashed its outlook for oil and metals prices on Thursday due to the economic fallout of the coronavirus pandemic and said the commodity market shock could hit developing countries hardest.
world bank, outlook, oil, metals, coronavirus, demand
220
2020-56-23
Thursday, 23 April 2020 10:56 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved