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Oil prices down, domestic oil production down, oil rig count up

In Q1’23, Nigeria produced 120.6 million barrels of crude oil, 26% less than its OPEC quota for the quarter (162 million barrels). This was despite the federal government’s continuous efforts to curb oil theft and the 15% increase in the country’s oil rig count to 15 in March from 13 in January. The declaration of a force majeure by Exxon Mobil Corp. on its oil exports from the Qua Iboe terminal has further dampened production prospects in the country. Meanwhile, the price of Brent has fallen to a 3-week low of $81.46pb on recessionary fears. This will further deplete Nigeria’s external reserve, which is currently below $36 billion ($35.34 billion). 

Higher copper prices to boost Botswana’s economy

Year-to-date, copper prices have risen 7.54% to $407.10/pound from $378.55/pound in December 2022. Copper is one of Botswana’s top exports after diamonds and insulated wires. Higher copper prices will further support Botswana’s economy, which grew by 5.9% in Q4’22 from 5.3% in the previous quarter.

Global battery metals prices fall against China’s economic recovery

Earlier this week, global prices of battery metals (e.g, lithium, nickel, cobalt, and copper) rose due to growing optimism about China’s demand. China is the world’s second-largest economy ($17.7trn) and the largest electric vehicle (EV) market. However, market anticipation of increased battery metal supply, and fears of further interest rate hikes by the US Fed have caused the global prices of these commodities to take a downturn. Global copper price dropped by 0.25% to $407.10/pound while nickel prices fell by 0.68% to $25,528/ tonne on April 20.

These and other burning economic issues were discussed on the Business Morning programme on Channels TV by FDC’s senior analyst, Bolanle Agbaje.

Enjoy your read!