Saudi Arabia’s travel industry is expected to reach $100 billion by 2032

WASHINGTON, The World Bank said Wednesday it expects energy prices to fall 11% in 2023 after this year’s 60% rise following Russia’s invasion of Ukraine. , although a slowdown in global growth and COVID-19 restrictions in China could lead to a deeper fall, according to Reuters.

In its latest outlook on commodity markets, the bank forecast an average Brent crude price of $92 a barrel in 2023, declining to $80 in 2024 but well above the five-year average of $60.

He said Russia’s oil exports could drop by up to 2 million barrels a day due to an EU embargo on Russian oil and gas products, coupled with restrictions on insurance and transport. maritime, which will enter into force on 5 December.

A proposed Group of Seven oil price cap could also affect the flow of oil from Russia, but requires the participation of large emerging markets and developing countries to be effective, he said, calling the mechanism of “untested”.

The World Bank said the appreciation of the dollar – and the fall in the value of the currencies of most developing economies – had pushed up food and fuel prices, which could worsen food insecurity affecting already 200 million people in the world.

“The combination of high commodity prices and persistent currency depreciations is translating into higher inflation in many countries,” said Ayhan Kose, who heads the World Bank Group that produces the report.

He said emerging and developing market economies should prepare for “a period of even higher volatility in global financial and commodity markets.”

Currency depreciation means that nearly 60% of oil-importing emerging markets and developing economies have seen an increase in domestic currency oil prices following Russia’s invasion of Ukraine, which began on Feb. 24, according to the report.

Nearly 90% of these economies also saw a larger increase in tern wheat prices in local currency, he added.

Food price inflation has averaged over 20% in South Asia in the first three quarters of 2022, while other regions including Latin America and the Caribbean, the Middle East and he North Africa, Sub-Saharan Africa, Eastern Europe and Central Asia, recorded an average food price inflation of between 12 and 15%.

While energy prices fell, they would still be 75% higher than their average for the past five years, the bank said.

Natural gas and coal prices are expected to decline in 2023 from record highs in 2022, but Australian coal and US natural gas prices are expected to double their five-year average by 2024. European natural gas could be almost four times higher, he says.

Coal production, meanwhile, was increasing dramatically, with major exporters ramping up production, jeopardizing climate change goals.

About Andrew Miller

Check Also

Bali collaborates with AirBnB for its “Live and work anywhere” campaign

Bali’s Ministry of Tourism and Creative Economy has announced its collaboration with Airbnb. As part …