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Brent crude extended gains after the Fed held rates at 5.5% p.a

Brent extended its gains today, climbing by 1.91% to trade at $75.68pb. The 4.3 million barrels per day drop in U.S. inventories and a weaker USD supported oil prices. The USD lost 0.83% against a basket of currencies after the Federal Reserve kept its policy rate unchanged at 5.5% p.a for the third consecutive time, signaling rate cuts in 2024. Lower global interest rates will likely cool oil prices, boost oil demand, and possibly spur a gradual recovery in developing economies on reduced import and debt service costs.

Cocoa producers are not benefiting from the global spike in chocolate bars

The price of chocolate bars, a derivative of cocoa, has spiked by 20% and 13% this year in the U.S. and Europe, respectively. Similarly, in Nigeria, the fourth-largest producer of cocoa globally, chocolate bars have increased by 150% to about N1500 in 2023 from N600 in 2022. Despite these price increases, sales of chocolate bars rose by 8.7% year on year in the UK. This will be beneficial for cocoa producers in Nigeria if chocolate processing industries are cited in the country, with the government giving them the necessary support they need to thrive.

These and other burning economic issues were discussed on Channels TV Business Morning Programme by FDC’s Associate, Dumebi Oluwole and Business Incorporated by senior analyst, Miriam Odey.

Click the link to watch the video.

Enjoy your read!