World faces biggest energy shock since 1970s, says World Bank
(VOVWORLD) - Energy prices which have surged since Russia’s military operation in Ukraine, along with other commodities, are likely to remain at "historically high" levels through the end of 2024, endangering economic growth, according to the World Bank’s latest Commodity Markets Outlook report.
 A petrol station in British Colombia, Canada, April 20, 2022. (Photo: Xinhua/VNA) |
The increase in energy prices over the past two years has been the largest since the 1973 oil crisis, triggered by OPEC members’ cut in their oil production, the World Bank said.
The price of Brent crude oil is expected to average 100 USD a barrel this year, the highest since 2013 as a result of the conflict in Ukraine and Western sanctions against Russia. European natural gas prices are expected to be double what they were last year and - along with coal - hit record levels, the report added.
Prices for grain, of which Russia and Ukraine are large producers, and fertilizers have seen the biggest price jumps since 2008, with wheat prices reaching an all-time high this year.
Overall, non-energy commodity prices are projected to jump 20% this year before easing, but will remain above their five-year average, according to the World Bank.