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10/26/2022, 5:26 PM (Source: TeleTrader)
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World Bank projects prices of energy to drop 11% in 2023

Raging prices of energy are projected to decline by 11% the following year after surging over 60% in 2022, according to World Bank's latest Commodity Markets Outlook report published on Wednesday.

"Despite this moderation, energy prices next year will still be 75% above their average over the past five years," the report revealed. The price of Brent crude oil is expected to average $92 a barrel in 2023, above the five-year average of $60 a barrel, while the gas and coal prices are expected to decrease from this year's record highs. However, the World Bank warned that the cost of United States natural gas is projected to double, while European natural gas prices could be nearly four times higher in the coming period.

"The combination of elevated commodity prices and persistent currency depreciations translates into higher inflation in many countries," said Director of the World Bank’s Prospects Group and EFI Chief Economist Ayhan Kose. The report noted that global energy markets continue to confront supply uncertainty as worries about the "availability of energy during the upcoming winter will intensify in Europe."

Baha Breaking News (BBN) / AB