'Global commodity prices may hit 6-yr low in 2026'

New Delhi: Global commodity prices are expected to reach a six-year low in 2026, marking the fourth straight year of decline, according to the World Bank's latest Commodity Markets Outlook. Prices are projected to fall by 7% each in 2025 and 2026 due to weakening global economic growth amid trade turmoil, crude oil glut, and continued policy uncertainty.Prices could plummet even lower if global growth remains sluggish, given the ongoing trade tensions and policy ambiguity, it noted. "Commodity markets are helping to stabilise the global economy," said Indermit Gill, the World Bank Group's chief economist and senior vice president for development economics. "Falling energy prices have contributed to the decline in global consumer-price inflation. But this respite will not last. Governments should use it to get their fiscal house in order, make economies business-ready, and accelerate trade and investment." Strong demand for liquefied petroleum gas (LPG) and petrol is fuelling India's oil consumption growth this year, the report noted.China and India together are expected to account for a quarter of global oil consumption growth in 2025 and two-fifths in 2026, the report said, citing the International Energy Agency (IEA).The World Bank forecast Brent crude prices to average $68 per barrel this year, declining $13 from last year and sliding further to $60/bbl in 2026, a five-year low, amid subdued consumption and rising supply. Prices are expected to recover to $65/bbl in 2027 as low prices are expected to limit excess supply. "Lower oil prices provide a timely opportunity for developing economies to advance fiscal reforms that promote growth and job creation," said Ayhan Kose, the World Bank's deputy chief economist and director of the Prospects Group. Live EventsPrecious metals, on the other hand, have surged to record highs in 2025, driven by safe-haven demand and strong central bank buying. Gold prices are expected to rise by 42% this year and another 5% in 2026, nearly doubling their 2015-19 average. Silver is also at a record annual average, gaining 34% in 2025 and a further 8% next year.Natural gas and coal trends Natural gas demand in the Asia Pacific, particularly China and India, fell in the first half of 2025 due to tepid industrial consumption and increased renewable power generation. At the same time, coal power generation in both countries fell amid lower electricity demand and the surge in renewables. However, the report forecast electricity demand to rise in India, China, and the US, driven by wider use of electric vehicles (EVs), air conditioning, and data centres. Food, AgriGlobal rice prices fell by more than a third from a year earlier and 10% sequentially in Q3 2025, with the World Bank attributing it to record-high production, India's removal of export restrictions, and a 5% rise in global ending stocks for 2024-25, led by India, Pakistan, Thailand, US, and Vietnam. Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onglobal commodity pricesWorld Bank commodity outlookcrude oil prices forecastIndia oil consumption growthprecious metals price surgecoal power generation trendsnatural gas demand (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onglobal commodity pricesWorld Bank commodity outlookcrude oil prices forecastIndia oil consumption growthprecious metals price surgecoal power generation trendsnatural gas demand(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless Explore More Stories123