The Fed increased the US policy rate by 25 basis points to a target range of 0.75%-1% p.a. The impact of the rate was a slight increase in the value of the dollar and an expectation of a fall in oil prices. Oil has held on at $51.76pb. Great news for Nigeria. Oil production in February increased 3.7% to 1.6mbpd.
Domestic commodity prices remained flat in spite of downward pressure owing to naira appreciation. We expect prices to slide as soon as current inventories are depleted and replacement cost pricing kicks in.
The attached report summarizes the commodity price movements for this week.