GHANA’S Minister of Finance, Seth Terkper says commodity prices which declined in recent months are expected to fall further in line with futures markets, owing mostly to improved supply prospects and weak global demand.
According to him, crude oil prices have experienced declines in recent times, reaching about US$82 a barrel in September 2014, before recovering to US$86 a barrel in November 2014 compared to the government’s Benchmark revenue projection of US$93.34 a barrel for 2014 and the IMF’s October 2014 World Economic Outlook (WEO) projections of US$102.8 a barrel in 2014.
According to the October 2014 WEO, crude oil prices are expected to average US$99.4 a barrel in 2015, falling further to around US$97.3 in 2016.
The 2015 projection is expected to be revised downwards. Metal prices, which have experienced declines in recent times, are projected to fall further by 7.5 percent in 2014 and by 1.8 percent in 2015, before rising by 0.6 percent in 2016. Food prices are also expected to decline by 4.1 percent in 2014 and by 7.9 percent in 2015 and remain broadly unchanged in 2016, reflecting expected favourable harvest conditions.
African Eye News.com
