Prospects and Prediction of Commodity Prices in 2023

There are a number of commodity prices that need attention in 2023. For example, the price of natural gas and coal energy commodities tends to fall in January 2023. Meanwhile, the price of crude oil commodities varies. This change is a prediction in determining the prospects for commodities in 2023.

Reported by investasi.kontan.co.id, Founder of Traderindo.com Wahyu Tribowo Laksono said that the decline in energy commodity prices was due to lower demand. This demand is affected by warmer winters, especially in Europe.

“Global concerns are shifting from out-of-control inflation to the potential for an economic slowdown to the threat of a recession is also another depressing sentiment,” said Wahyu (05/02/2023).

It is known that crude oil prices weakened after the United States Energy Information Agency (USA) reported crude oil reserves. It was recorded that there were 4.1 million barrels of crude oil reserves for the week to 27th January 2023. This number increased compared to the previous week’s reserves of around 500 thousand barrels.

However, the decline was not too significant because OPEC said it would maintain the production reduction agreed last year. In October 2022, OPEC and its allies agreed to cut oil production by 2 million bpd.

In the future, Wahyu sees that the prices of these three energy commodities are still vulnerable to pressure. Global coal supply in 2023 is expected to be abundant because China and India will also increase their production. According to him, it is difficult for coal to rise to a record price last year.

“Coal prices have the potential for correction in the range of US$ 100-US$ 350 per barrel with price consolidation around US$ 200 per barrel,” said Wahyu.