The World Bank, in its April Commodity Markets outlook, says that the global economic shock of the COVID-19 pandemic has driven most commodity prices down and is expected to result in substantially lower prices for the rest of 2020.
The World Bank report says energy and metals commodities are the most affected by the sudden halt to economic activity and the serious global slowdown that is anticipated.
Commodities associated with transportation, including oil, have experienced the steepest declines.
Despite only moderate impact on the outlook for most agricultural commodities, supply chain disruptions and government steps to restrict exports or stockpile commodities raise concerns that food security may be at risk in places.
Monthly average crude oil prices plunged 50 percent between January and March.
Prices reached a historic low this month with some benchmarks trading at negative levels.
The World Bank report says they are expected to average US$35 per barrel in 2020, a sharp downward revision from the October forecast and a 43 percent drop from the 2019 average of $61 per barrel.
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