US EditionAfrica: W/Bank Projects Commodity Prices to Hit 6-Year Low As Oil Glut Expands
Commodity prices are forecast to drop for the fourth year due to weak growth and oil surplus, while gold and silver prices are expected to rise sharply, World Bank reports.
- Next year, the World Bank projects global commodity prices will fall 7 percent, reaching a six-year low and marking a fourth straight year of decline in global commodity markets.
- Slower oil demand stems from improved supply conditions for coffee and cocoa, with energy forecasts showing prices falling in 2026, according to the World Bank.
- Precious metals diverge as gold is expected to increase by 42% in 2025 and a further 5% next year, and silver is forecast to rise 34 and 8 percent in 2025 and 2026, supported by central bank purchases.
- Falling energy and food prices are easing global inflation and making food more affordable in some developing countries, while Ayhan Kose said lower oil prices provide an opportunity to phase out costly fuel subsidies.
- The report recommends diversifying production, investing in technology, improving data transparency, and promoting market-based pricing as fertiliser is projected to surge 21 in 2025 and ease 5 in 2026, while soybean prices fall due to record production and trade tensions.
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'Global commodity prices may hit 6-yr low in 2026'
Global commodity prices are set for a significant drop, reaching a six-year low by 2026. This decline is driven by slowing global economic growth and trade uncertainties. India and China will be key drivers of oil consumption growth. While energy prices fall, precious metals like gold and silver are seeing record highs.
According to the World Bank, prices for raw materials have been going down for years - the trend is likely to continue in the short term, but not everywhere.
The World Bank estimated that raw material prices will fall by 7% in both 2025 and 2026, accumulating four consecutive years of decline and reaching the lowest level in the next six years. It also warned of a possible impact of La Niña on Argentina’s agricultural production. The report “Prospects of raw material markets” explained that the drop in prices is linked to “weak global economic growth, the growing surplus in oil supply and persistent …
World Bank Forecasts Six-Year Low in Commodity Prices Due to Oil Surplus and Demand Shifts
Global commodity prices are on track to fall to their lowest level in six years by 2026, as weaker demand, a widening oil surplus, and policy uncertainty continue to weigh on markets, according to the World Bank’s latest Commodity Markets Outlook. The World Bank expects global energy prices to fall sharply as oil oversupply builds. The oil glut in 2025 is projected to expand 65 percent above its last peak in 2020 as electric and hybrid vehicles …
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