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Brent gained on lower-than-expected decline in US crude inventories

Brent rose by 0.64% to $76.54pb, fueled by a decline in U.S. crude stockpiles to their lowest level since November 2023. The Energy Information Administration (EIA) reported a 1.08% fall in inventory levels, from 430.68 million to 426.03 million barrels, surpassing analysts’ expectations of a 2.6 million barrel draw. In Nigeria, the lingering fuel scarcity is beginning to ease with the average price of PMS dropping sharply to N800/litre. The attendant effect of the falling price of PMS on transportation and logistics costs is having a knock-on impact on domestic commodity prices.

Prices of Arabica and Robusta coffee surged to $2.57/lb and $2.15/lb (YTD) on global demand

Arabica and Robusta coffee prices surged by 34.43% and 138.89% (YTD)due to rising consumption in China, where coffee shops grew by 58% to 50,000 in 2023. Supply shortages from Brazil, Vietnam, and Colombia have exacerbated the price increase.  Nigeria has the potential to be a major player in the global coffee market.  Increasing yields and adopting modern farm practices are imperative for this goal to materialize, boost Nigeria’s export earnings in the medium-long term.

FDC’s MD, Mr. Bismarck Rewane and senior analyst Victoria Momoh 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!