Rising diesel and fertilizer prices are adding pressure to the global economy as financial leaders prepare for the annual meetings of the International Monetary Fund and World Bank.

World Bank president Ajay Banga said the organization is discussing possible crisis support with 30 to 40 countries affected by energy-price increases, heavy debt and other economic pressures.

The IMF and World Bank meetings are scheduled for Oct. 12 to 18 in Bangkok. Finance ministers, central bank governors and development officials will discuss economic growth, debt, financial stability and responses to the energy shock.

The World Bank made an initial US$25 billion available for crisis support after the Middle East war began in February.

Countries could access another US$35 billion by redirecting money from previously approved World Bank projects. The institution could make as much as US$100 billion available if economic conditions deteriorate.

Interest in the funding was initially limited as countries adjusted to changes in oil supply and demand. That could change as higher diesel and fertilizer costs place additional pressure on government budgets, transportation systems and food production.

Energy markets remain volatile.

Brent crude settled at US$104.72 a barrel Friday, while West Texas Intermediate closed at US$91.85.

Oil prices increased after companies shut down more than 70 per cent of crude production in the U.S. Gulf of Mexico ahead of Hurricane Isaias. Middle East fighting and continuing threats to shipping through the Strait of Hormuz have added further uncertainty.

The effects are mixed for Alberta.

Higher oil prices can support energy-sector earnings, investment and provincial resource revenue. At the same time, higher diesel prices increase costs for farms, trucking companies, construction businesses and other industries that depend on heavy equipment.

Agriculture and Agri-Food Canada says farmers are largely price takers for diesel and gasoline because fuel prices are influenced by global supply and demand.

Eligible Alberta producers receive a nine-cent-per-litre provincial tax exemption when purchasing marked gasoline and diesel through the Alberta Farm Fuel Benefit Program.

The exemption reduces the provincial tax charged on eligible fuel, but it does not protect producers from increases in the underlying wholesale or retail price.

Fertilizer presents another risk.

Natural gas is a major feedstock used to produce nitrogen fertilizer. Higher energy costs can therefore affect both fertilizer production and transportation expenses.

Agriculture and Agri-Food Canada has estimated that approximately 25 per cent of globally traded nitrogen fertilizer normally passes through the Strait of Hormuz. Disruptions affecting the shipping route could reduce supplies or increase freight and insurance costs.

That does not mean Alberta fertilizer prices will rise immediately. Local costs also depend on existing inventories, supplier contracts, exchange rates, transportation and the timing of farm purchases.

The World Bank’s concerns are focused primarily on developing countries with limited financial capacity to absorb another increase in food, fuel and borrowing costs.

Developing countries are expected to owe about US$400 billion to external creditors in 2026. Interest payments account for approximately one-third of that amount, according to the World Bank.

For Alberta producers, the meetings will provide an early indication of how international financial institutions expect the energy shock to affect fuel, fertilizer, food production and global commodity demand.