The World Bank predicts that energy prices would decline by 11% in 2023; this is due to a 60% increase this year due to Russia’s invasion of Ukraine. However, slower global growth and COVID restrictions in China could cause a deeper decline.
European Union embargo on Russian oil and gas products, along with limitations on insurance and shipping, will go into effect on December 5. This is to cause Russia’s oil exports to decline by as much as 2 million barrels per day.
According to a survey, the Russian invasion of Ukraine, started on February 24; it caused domestic oil prices to rise in about 60% of emerging markets and developing economies that import oil. According to the report, wheat prices in local currency increased more significantly in over 90% of these economies.
The prices of natural gas and coal are forecast to drop in 2023 after record highs in 2022; but by 2024, prices for Australian coal and American natural gas are still to be twice as high as their average over the previous five years.