IMF expects energy prices to fall by the end of the first quarter of 2022

Energy prices, which have skyrocketed in recent days, could remain high in the coming months, but will start to decline in early 2022, Gita Gopinath, chief economist at the International Monetary Fund, said on Tuesday.IMF), in an interview with AFP.

While energy prices “will be high” over the next few months, “we expect them to go down again by the end of the first quarter of next year and in the second quarter,” he said.

“Once we get through the winter months, we will be better,” Gopinath said.

World oil prices spiked to record highs on Monday due to strong demand and tight supply, causing major equity markets to crash.

West Texas Intermediate Oil (WTI) for delivery in November traded above $ 80 a barrel for the first time since October 2014, while oil Brent from London it jumped to a three-year high at $ 84.59.

The WTI rose on Tuesday, although the Brent he stepped back slightly.

That rise in energy prices raised fears that inflation could rise further and hamper the global economic recovery from the recession caused by the pandemic.

Gopinath warned that the weather will play a role, as a very severe northern winter could lead to longer-range power outages and blackouts “that will have a much greater effect on the world.”

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