Oil prices to be lower in 2019 on slower-than-expected global growth, rising non-OPEC supply

Must Read

PepsiCo Elects Segun Agbaje To Board Of Director

PepsiCo, Inc. (NASDAQ: PEP) today announced its Board of Directors has elected Segun Agbaje as an independent member of...

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

Metal, agriculture prices to stage partial recovery, momentum to pick up in 2020

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 U.S. production, the World Bank said.

Metal prices are expected to continue a recovery in 2019 that follows a sharp drop in the second half of 2018, the World Bank said in its April Commodity Markets Outlook. The recovery has been spurred by the stabilization of activity in China 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 & 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.”

- Advertisement -

Agriculture prices are projected to fall 2.6 per cent this year but rebound in 2020 due to lower crop production and higher costs for energy and fertilizers. An escalation of trade tensions would likely push prices lower, but higher-than-expected energy costs could lift prices more than expected.

Read Also:  Why you should consider investing in Eurobond Funds?

“The outlook for commodity prices is sensitive to policy-related risks, especially for oil,” said Ayhan Kose, Director of the World Bank’s Prospects Group. “The outlook for oil could be swayed by a range of policy outcomes, including whether the Organization of the Petroleum Exporting Countries (OPEC) and partners extend production cuts, the impact of the removal of waivers to the U.S. sanctions on Iran, and looming changes in marine fuel emissions regulations.”

After a drop in late 2018, oil prices have risen steadily since the start of the year, as OPEC and partners have cut production, and output has declined in Venezuela and Iran. U.S. shale production is expected to remain robust after surging in 2018. Energy prices overall – which also include natural gas and coal ‒ are expected to average 5.4 per cent lower in 2019 than in 2018.

A special focus section shows that when countries intervene to dampen the effect of food price fluctuations on their citizens, the collective intervention of many countries can produce the opposite of the intended effect and amplify movements in world prices – to the detriment of the most vulnerable populations.

- Advertisement -
Read Also:  Emerging Markets Outlook in 2019

Oil prices to be lower in 2019 on slower-than-expected global growth, rising non-OPEC supplyRUDE

- Advertisement -
Oil prices to be lower in 2019 on slower-than-expected global growth, rising non-OPEC supplyOil prices to be lower in 2019 on slower-than-expected global growth, rising non-OPEC supply

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Oil prices to be lower in 2019 on slower-than-expected global growth, rising non-OPEC supplyOil prices to be lower in 2019 on slower-than-expected global growth, rising non-OPEC supply

Latest News

Lagos to Establish Arts, Crafts Villages in Badagry, Epe (Photos)

The Lagos State Government said that it has identified Badagry and Epe as the proposed locations for the establishment...

Moody’s announces completion of a periodic review of ratings of Access Bank Plc

London, 08 July 2020 - Moody's Investors Service has completed a periodic review of the ratings of Access Bank Plc and other ratings that...

Global Financial Market in H2-2020: Taking a Vshaped recovery?

At the height of the pandemic in Mar-2020, stock markets crashed to the levels not seen since the Global Financial Crisis 2008/9 as investors...

Mercedes-Benz Cars & Vans delivers more than a million vehicles worldwide in first half of 2020

Since the beginning of the year, Mercedes-Benz Cars & Vans sold 1,071,136 cars and commercial vans. Mercedes-Benz achieved its best-ever Q2 car sales...

Access Bank Subsidiary seeks to buy Zambian bank

Access Bank Plc announces today that its wholly-owned subsidiary in Zambia, Access Bank Zambia Limited has entered into exclusive discussions with Cavmont Capital Holdings...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Oil prices to be lower in 2019 on slower-than-expected global growth, rising non-OPEC supplyOil prices to be lower in 2019 on slower-than-expected global growth, rising non-OPEC supply