Oil prices are expected to continue on a downward trend despite tensions in the Middle East, according to a new report by the World Bank Group. The “Commodity Markets Outlook” published this Tuesday forecasts that oil and commodity prices as a whole will fall next year.
The World Bank’s Deputy Chief Economist, Ayhan Kose, discussed the findings of the report with FRANCE 24, highlighting the potential impact on developing economies. The declining prices are likely to have far-reaching implications, affecting not only oil-producing countries but also those that rely heavily on commodities for their economic growth.
The report’s predictions come amidst ongoing geopolitical tensions in the Middle East, including the recent attacks on oil infrastructure in Saudi Arabia. Despite these uncertainties, the World Bank remains cautious in its outlook for oil prices, citing factors such as slowing global economic growth and rising supply as contributing to the downward trend.
Developing economies, in particular, may face challenges as they grapple with lower commodity prices and the potential impact on their export earnings. The World Bank’s report underscores the need for these countries to diversify their economies and improve their resilience to fluctuations in commodity markets.
As oil prices continue to decline, the global economy is likely to experience both challenges and opportunities. It remains to be seen how policymakers and market participants will navigate this changing landscape in the months to come.
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