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Brent gained 0.11% due to an unexpected drop in US crude inventories

Brent futures rose 0.11% to $74.29pb, driven by a 33.05% decline in U.S. inventories to 3.2mb. This contradicts analysts’ expectations of an increase of 2.3mb, signaling stronger-than-expected demand. Rising geopolitical tensions, particularly Israel’s airstrikes on Lebanon, also supported prices. In the short term, oil prices will likely remain bullish, especially as global interest rates fall. The ECB cut its benchmark interest rate to 3.25% today from 3.5%, potentially boosting demand.

5 litres of vegetable cooking oil skyrocketed to N15,000.

The price of a 5-litre vegetable cooking oil has doubled to N15,000 in October from N7,500 (yoy). This is mainly due to supply disruptions from the Russia-Ukraine war and export shocks from key producers Argentina and Brazil. Higher vegetable oil prices are expected to shift consumer demand towards palm oil in the near term.

FDC’s managers, Dr. Ifeoma Nwokolo and Terver Kumeka, discussed these and other burning economic issues on Channels TV Business Morning and Business Incorporated programmes, respectively.

Click the link to watch the video.

Enjoy your read!