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Commodity Prices to Drop Again Amid Economic Shifts

10/29/2025

41 4 Full Breakdown

Summary

Story summary

Global commodity prices are projected to fall for a fourth year, down about 7% in 2025 and 2026.
The decline stems from oil surplus, weak growth, and electric vehicle adoption, with Brent averaging $60 per barrel in 2026.
Energy and food prices ease, but fertilizer costs rise 21% in 2025, threatening farm profitability.
The World Bank urges governments to use lower oil prices for fiscal reforms to strengthen economic stability.

History

Historical Context

In 2015, global commodity prices fell sharply, with oil averaging $50 per barrel, driven by oversupply and weak demand, particularly from China. The International Monetary Fund noted a 40% drop in commodity prices from 2014, impacting economies reliant on exports. This decline echoes current trends, emphasizing vulnerabilities in global markets and the need for fiscal reforms to enhance economic resilience.

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Story summary

Global commodity prices are projected to fall for a fourth year, down about 7% in 2025 and 2026.
The decline stems from oil surplus, weak growth, and electric vehicle adoption, with Brent averaging $60 per barrel in 2026.
Energy and food prices ease, but fertilizer costs rise 21% in 2025, threatening farm profitability.
The World Bank urges governments to use lower oil prices for fiscal reforms to strengthen economic stability.

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