The World Bank report for the commodity markets outlook for 2018 is bullish on the crude oil prices. The report forecasts that the prices will average at $65 per barrel in 2018 and 2019.
Last year prices averaged at $53 per barrel.
Aurobinda Prasad Gayan of Kotak Commodities said $ 65 per barrel seems to be a very strong average price.
The World Bank is quite bullish on the metal space as well, expecting the metal index to rise up by 9%.
The report suggests a 3% rise in the precious metal space. The interest rate scenario, geopolitical concerns and the weakness in US dollar are a couple of factors which could be supportive of that.
The agricultural commodities are expected to see a price rise of 2%. Stronger output levels globally will help the prices sustain, but strong demand from many countries is expected to take the agricultural commodities on the higher side.
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