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Energy and metal commodity prices are expected to continue to fall in 2020 following sharp declines in 2019 on a weaker outlook for global growth and consequent softer demand, the World Bank said in its October Commodity Markets Outlook.

Crude oil prices are projected to average US$60 per barrel in 2019 and weaken to US$58 per barrel in 2020. These forecasts are US$6 per barrel and US$7 per barrel, respectively, lower than anticipated in the April Commodity Markets Outlook.

In line with the slowdown in global growth, oil consumption is now expected to rise at a much slower pace than earlier forecasts and increase only modestly next year. A sharper-than expected economic downturn poses the greatest risk to the oil price forecast. More broadly, energy prices, which also include natural gas and coal, are expected to average almost 15 percent lower in 2019 than in 2018, and to continue to decline in 2020.

Metal prices are also projected to fall 5 percent in 2019 and continue to slide next year as slowing global demand weighs heavily on the market. Agriculture prices are anticipated to decline this year but stabilize in 2020.

A resolution of trade tensions could push up the prices of some agricultural commodities, such as soybeans and corn, while lower energy prices could lower fuel costs and fertilizer prices, reducing prices of energy-intensive crops such as oilseeds.