FDC COMMODITY UPDATE – MAY 09, 2019

Dear Subscriber,

Following an escalation of tensions between the US and China, Brent is currently trading below $70pb ($69.98pb). The YTD gain in oil price is now at 30%.

A fall out from the fresh round of negotiations between the US and China this week could result in a further fall in oil price. With the 2019 oil price budget benchmark in view, a sustained reduction in price would have a negative impact on external reserves accretion and exchange rate stability.

The attached slides address these and other issues in the domestic and global commodity markets.

Enjoy your read!