Out of focus Market Information image
Markets

World Bank raises its 2017 price outlook for metals & oil

Overnight the World Bank's latest 'Commodity Markets Outlook' was released

  • Raised its forecast for crude oil to $55 / barrel ( from $53 in its July report)
  • Kept its forecast for an average oil price of $43 in 2016

Coal prices to average $58/t in 2016

  • Says the recent increase in coal to above $65/t is due to strong demand and tightening supply in China (government trying to deal with overcapacity) and adverse weather
  • Expects coal prices to fall during 2017: on added supply additions & weaker demand
  • "China's coal policy will be key, given that the country consumes half of the world's coal output and coal accounts for nearly two-thirds of the country's energy consumption

Metals

  • prices expected to rise in 2017
  • Citing faster-than-expected mine closures
  • Says Q3 price gains driven by supply constraints, strong demand, falling stocks
  • "Iron ore, nickel, tin and zinc have risen by more than 20% over the past two quarters on various supply shortfalls, while the two largest consumed metals-aluminum and copper-have seen more modest gains on ample supply and rising capacity"

More here

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx

Latest Markets Videos