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Brent remains below $85pb despite supply tightness

In spite of efforts by swing producers to bolster oil prices, Brent lost 0.64% to trade at $83.92pb today owing to investors’ concerns about China’s slow economic recovery. Since March, Saudi Arabia and Russia have slashed their cumulative oil output by 5mbpd in a bid to keep oil prices elevated. However, in the coming weeks, oil prices are likely to be influenced by China’s efforts in stimulating growth in its economy as well as the US Fed’s decision on its benchmark rate.

Maize futures in the country soar to ₦250,000/tonne

The price of maize in the Nigerian market has risen from ₦70,000 to ₦250,000 (257%) in the past three years. This increase is due to a combination of factors including higher grain prices globally, Russia’s pull-out from the Black Sea grain deal, Niger’s sanctions, and border closure. In the coming weeks, the rising domestic demand and supply constraints will keep the price of maize elevated.

Poultry feed and eggs are feeling the knock-on effect of the elevated price of maize, rising to ₦10,000/bag and ₦2,500/crate respectively, this month. This will further worsen the cost of living crisis as consumers’ disposable income shrinks.

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

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