We expect ample supply to result in large falls in global oil prices in the next few years. At the same time, the prices of other key commodities, including industrial metals and agriculturals, are likely to remain subdued. This may well be a benign development for those countries not already at risk of widespread deflation, helping to keep interest rates low and boosting activity. But it could tip others, including the weaker economies of the euro-zone, into a more damaging period of falling prices.
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