BAKU, Azerbaijan, April 17. The International Monetary Fund (IMF) predicts a drop in fuel prices for 2024. On average, fuel commodities are expected to decrease by 9.7 percent, with oil prices falling around 2.5 percent, Trend reports.
As the IMF explains, this decline is due to ample spare capacity and robust non-OPEC+ (which includes Russia) supply growth.
Coal and natural gas prices are also projected to continue their downward trend from previous highs. Coal prices are forecasted to drop by 25.1 percent, while natural gas prices are expected to decrease by 32.6 percent in 2024. The natural gas market is showing signs of balance due to increased supply, reduced demand, and high storage levels.
Nonfuel commodity prices are predicted to remain relatively stable in 2024. However, base metal prices are anticipated to fall by 1.8 percent, mainly due to weakened industrial activity in Europe and China.
Additionally, food commodity prices are forecasted to decline by 2.2 percent in 2024. This revision from earlier forecasts is driven by expectations of abundant global supplies of wheat and maize.
Overall, the IMF expects a mixed outlook for commodity prices in 2024, with significant decreases in fuel prices but relatively stable prices for nonfuel commodities.
