WASHINGTON (Reuters) – The World Bank slashed its outlook for oil and metals prices on Thursday due to the economic fallout of the coronavirus pandemic and said the commodity market shock could hit developing countries hardest.
prices are expected to average $35 a barrel this year, down 43% from the average in 2019, the World Bank said, marking a sharp downward revision from its October forecast.
“The downward revision reflects an historically large drop in demand,” the World Bank said in a press release. It said overproduction from OPEC and other major world oil producers was exacerbating the price decline.
Metals prices, meanwhile, are seen dropping 13% overall this year, the World Bank said. But gold, a traditional safe-haven investment, is seen up nearly 15%.
It added that the impact of the health crisis on agricultural commodity prices is…