Global Economic Prospects : Commodity Markets Outlook, July 2014
Geopolitical concerns in Iraq and Ukraine/Russia earlier in the year put upward pressure on oil prices during the second quarter. As tensions moderate, oil prices are expected to decline in 2015. Metal prices eased during the 2014Q2 due to supply r...
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank Group, Washington, DC
2014
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| Online Access: | http://hdl.handle.net/10986/20401 |
| Summary: | Geopolitical concerns in Iraq and
Ukraine/Russia earlier in the year put upward pressure on
oil prices during the second quarter. As tensions moderate,
oil prices are expected to decline in 2015. Metal prices
eased during the 2014Q2 due to supply response from earlier
investments and weakening demand, especially by China.
Weather concerns (often linked to likely El Niño) induced
price increases in some grains earlier in the year but
recently prices have weakened as supplies for the upcoming,
2014/15, season are deemed adequate to keep stocks at
reasonable levels. Agricultural prices are expected to
decline slightly in 2015. The key commodity price indices
have been broadly stable during 2014Q2. Energy and
agricultural prices increased 1 percent each, on
geopolitical and weather-related concerns, respectively;
while metal prices declined 1 percent on signs of Chinese
demand weakness. The increase in beverage prices was driven
by a rally in coffee prices due to dry weather in Brazil
world's largest coffee supplier. Precious metal prices
changed little while fertilizer prices declined 6.5 percent
due to weakness in natural gas prices. |
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