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Coronavirus rattles commodity markets – WB

Economic effects due to the COVID-19 pandemic of suspending almost all activity have immediately impacted the world’s commodity markets and are likely to continue to affect them for months to come, the April edition of the World Bank’s Commodity Markets Outlook reports.
Those effects are direct, resulting from shutdowns to mitigate the spread of the virus and disruptions to supply chains, and also indirect, as the global response slows growth and leads to what is anticipated to be the deepest global recession in decades.

The full impact of the pandemic on commodity markets will depend on how severe it is, how long it lasts, and how countries and the world community choose to respond to it. The pandemic has the potential to lead to permanent changes in the demand and supply of commodities, and especially to the supply chains.

The effects have already been dramatic, particularly for commodities related to transportation. Oil prices have plunged since January, and prices reached an historic low in April with some benchmarks trading at negative levels.