BAKU, Azerbaijan, June 16. Energy commodity prices declined in the first half of this year, but they are expected to stabilize by 2024, Manager of the Prospects Group in the Equitable Growth, Finance and Institutions (EFI) Practice Group at the World Bank (WB) Franziska Lieselotte Ohnsorge said during the presentation of the WB's report, Trend reports.
"However, there are downside risks, especially for metal prices. If China's economic recovery turns out to be less significant than expected, or its basis turns out to be more related to consumption, this could affect metal prices. This is a short-term prospect," she said.
Ohnsorge also drew attention to the long-term perspective.
"The WB's analysis shows that fossil fuel exporters are generally more dependent on resources than other commodity exporters, such as metals and agricultural products. Fossil fuel exporters are more dependent on resource revenues, the share of resources in export revenues, government revenues and resource rents in GDP. That is why they face a more serious political problem in the long term," she stressed.
She noted that with the onset of the energy transition and a decrease in demand for fossil fuels, exporters of this sector will have to actively diversify their activities.
"Such a task can be very difficult. Some countries may have an advantage in the form of a variety of fossil fuels, which will allow them to cope with changes more smoothly. For example, the demand for gas, as a cleaner fuel, can be maintained longer than for oil," she added.
She predicts a general decline in demand for fossil fuels in general, which will require countries to adapt to new conditions.