A recent press release from The World Bank caught our attention. Commodity prices to rise more than expected in 2018: World Bank Here’s an excerpt:
“Oil prices are forecast to average $65 a barrel over 2018, up from an average of $53 a barrel in 2017, on strong demand from consumers and restraint by oil producers, while metals prices are expected to rise 9 percent this year, also on a pickup in demand and supply constraints…
Prices for energy commodities – which include oil, natural gas, and coal -- are forecast to jump 20 percent in 2018, a 16 percentage point upward revision from October’s outlook… The metals index is expected to rise as an 9 percent drop in iron ore prices is offset by increases in all base metals prices, led by nickel, which is forecast to rise 30 percent.”
It’s important validation for much of the research we have published lately. In our opinion, it’s not about the numbers, rather the magnitude of the upward revisions. For more information, read the Commodity Markets Outlook from The World Bank.
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