World faces biggest energy shock since 1970s

Energy prices have risen since Russia’s invasion of Ukraine and, along with other commodities, are likely to remain at “historically high” levels during 2024, which could jeopardize economic growth, the World Bank said. warning Tuesday.

“This is the biggest commodity shock we’ve hit since the 1970s,” said Indermit Gill, vice president of the World Bank’s equitable growth, finance and institutions.

The shock – which is expected to push energy prices up 50 per cent this year – is exacerbated by trade restrictions and rising food, fuel and fertilizer prices.

“These developments have begun to lift the morale of stagnation,” Gill warned in a statement on the World Bank’s report on Commodity Markets Outlook.

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Calling from other World Bank and International Monetary Fund officials over the past few days, he urged governments to “take every opportunity to increase domestic economic growth and avoid actions that will harm the global economy. . ”

The report said increases in energy prices over the past two years are the largest since the 1973 oil crisis when the OPEC group of oil – producing countries declared an embargo.

Amid the war and Western sanctions on Moscow, Brent crude oil prices are estimated to average $ 100 a barrel this year, the highest since 2013, the report said.

European natural gas prices are expected to double in 2021 and – along with coal – reach record levels, he added.

Prices of cereals, which are major producers in Russia and Ukraine, and fertilizers have been the main focus since 2008, with wheat prices at an all – time high this year.

Overall, non-energy commodity prices, including agriculture and metals, are projected to jump 20 percent this year before easing, but will remain above their five-year average, according to the World Bank.

World faces biggest energy shock since 1970s Source link World faces biggest energy shock since 1970s

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