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The World Bank also sees a rise in demand for oil and energy in the second half of 2017 [Xinhua]
It says that falling supply and increased demand will largely contribute to a rise in gains for energy and metal commodities in 2017.
“The Bank is raising its metals price forecast to an increase of 11 percent from the 4 percent rise anticipated in its October outlook on further tightening of supply and strong demand from China and advanced economies,” it said in a press release accompanying the report.
When it comes to the oil industry, the World Bank report said: “The energy price forecast assumes members of the Organization of the Petroleum Exporting Countries (OPEC) and other oil producers will partially comply with an agreement to limit production after a long period of unrestrained output.”
The World Bank therefore forecasts oil prices around $55 a barrel.
The report is sure to shore up hopes for countries which largely depend on commodity exports such as Venezuela and Russia, both of which have seen their economic fortunes dwindle in recent years largely due to the drastic drop in oil prices.
The BRICS Post with inputs from Agencies
