Our forecast of slower global growth in 2019-20 is a key factor underpinning our bearish outlook for the prices of oil and coal. What’s more, we expect further declines in global equity markets and a resilient US dollar this year, suggesting that investors will exit riskier asset classes, including commodities.
That said, we are more positive on the outlook for the price of natural gas as its greener properties should mean that demand holds up rather better. We also think oil prices will start to recover in 2020 as the Fed starts to cut interest rates, China’s economy stabilises and investors become less risk averse.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services