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Commodity Markets Outlook, October 2022

A sharp global growth slowdown and concerns about an impending global recession are weighing on commodity prices. Some energy prices remain elevated, however, amid geopolitical tensions and persistent supply disruptions. Brent crude oil prices are forecast to average $92/bbl in 2023 and ease to $80/...

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Main Author: World Bank Group
Format: Online
Language:en_US
Published: Washington, DC : World Bank 2022
Subjects:
Online Access:https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099733104242521908
https://hdl.handle.net/10986/38160
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author World Bank Group
author_facet World Bank Group
author_sort World Bank Group
collection Publicaciones institucionales emblemáticas
description A sharp global growth slowdown and concerns about an impending global recession are weighing on commodity prices. Some energy prices remain elevated, however, amid geopolitical tensions and persistent supply disruptions. Brent crude oil prices are forecast to average $92/bbl in 2023 and ease to $80/bbl in 2024. Agricultural and metal prices are projected to decline 5 and 15 percent, respectively, in 2023 before stabilizing in 2024. The outlook is subject to multiple risks in a highly uncertain environment. They include worsening global growth prospects, including the pace of recovery in China; macroeconomic uncertainties; a prolonged and deeper conflict in Ukraine; and, in the case of food commodities, the ongoing La Niña weather pattern along with trade policies. A Special Focus section investigates the drivers of aluminum and copper prices. It finds that the price rebound after the pandemic was mainly driven by the economic recovery, but supply factors also contributed about one-quarter to the rebound. Since March 2022, a steep global growth slowdown, an unwinding of supply constraints, and concerns about an imminent global recession contributed to the plunge in metal prices. It concludes that for metal exporters, the energy transition may bring windfalls, but it could also increase their exposure to price volatility.
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spelling wb-10986-381602025-05-22T02:26:12Z Commodity Markets Outlook, October 2022 Pandemic, War, Recession : Drivers of Aluminum and Copper Prices World Bank Group COMMODITY PRICES ENERGY PRICES OIL AND GAS OPEC OPEC+ AGRICULTURE PRICES METAL PRICES WAR IN UKRAINE RECESSION PANDEMIC A sharp global growth slowdown and concerns about an impending global recession are weighing on commodity prices. Some energy prices remain elevated, however, amid geopolitical tensions and persistent supply disruptions. Brent crude oil prices are forecast to average $92/bbl in 2023 and ease to $80/bbl in 2024. Agricultural and metal prices are projected to decline 5 and 15 percent, respectively, in 2023 before stabilizing in 2024. The outlook is subject to multiple risks in a highly uncertain environment. They include worsening global growth prospects, including the pace of recovery in China; macroeconomic uncertainties; a prolonged and deeper conflict in Ukraine; and, in the case of food commodities, the ongoing La Niña weather pattern along with trade policies. A Special Focus section investigates the drivers of aluminum and copper prices. It finds that the price rebound after the pandemic was mainly driven by the economic recovery, but supply factors also contributed about one-quarter to the rebound. Since March 2022, a steep global growth slowdown, an unwinding of supply constraints, and concerns about an imminent global recession contributed to the plunge in metal prices. It concludes that for metal exporters, the energy transition may bring windfalls, but it could also increase their exposure to price volatility. 2022-10-16T15:39:01Z 2022-10-16T15:39:01Z 2022-10-26 Serial Sériel Serial https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099733104242521908 https://hdl.handle.net/10986/38160 10.1596/38160 en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank application/pdf application/pdf application/pdf application/octet-stream Washington, DC : World Bank
spellingShingle COMMODITY PRICES
ENERGY PRICES
OIL AND GAS
OPEC
OPEC+
AGRICULTURE PRICES
METAL PRICES
WAR IN UKRAINE
RECESSION
PANDEMIC
World Bank Group
Commodity Markets Outlook, October 2022
title Commodity Markets Outlook, October 2022
title_full Commodity Markets Outlook, October 2022
title_fullStr Commodity Markets Outlook, October 2022
title_full_unstemmed Commodity Markets Outlook, October 2022
title_short Commodity Markets Outlook, October 2022
title_sort commodity markets outlook october 2022
topic COMMODITY PRICES
ENERGY PRICES
OIL AND GAS
OPEC
OPEC+
AGRICULTURE PRICES
METAL PRICES
WAR IN UKRAINE
RECESSION
PANDEMIC
url https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099733104242521908
https://hdl.handle.net/10986/38160
work_keys_str_mv AT worldbankgroup commoditymarketsoutlookoctober2022
AT worldbankgroup pandemicwarrecessiondriversofaluminumandcopperprices