FDC COMMODITY UPDATE – OCTOBER 24, 2019

Dear Subscriber,

OPEC considers deeper oil production cuts

Brent oil has increased 1.9% in the last 2 days to $61.33pb on reports that OPEC and its allies are considering implementing deeper production cuts at its next bi-annual meeting in December.

If OPEC increases its production cuts and enforces the quota, Nigeria’s oil revenues will suffer in spite of the higher oil price.  The Nigerian economy is more sensitive to oil production than price.

Nigeria’s vegetable oil consumption set to increase

Nigeria consumes an estimated 1 million tons of vegetable oil annually. Demand is set to increase as the festive season approaches. However, demand exceeds supply with the shortfall estimated at 300,000 tons.

The current initiatives to improve agricultural yields is likely to result in higher domestic production of vegetable oil in Nigeria.

In the slides, these and other issues were discussed on the Channels TV Business Morning programme today.

Enjoy your read!