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Oil prices set for the longest losing streak in August

In the past three days, Brent crude lost 2.70% to $83.01pb from $85.32pb, on worries over sluggish economic growth in China. This decline was further worsened by weak PMI data in Europe and expectations of another interest rate hike by the US Fed. However, losses were limited by a larger-than-expected drop in US crude inventories by 6.1 million barrels. Meanwhile, markets are betting on the outcome of the Jackson Hole meeting, set to commence today.

The domestic price of onion jumps by 37% in August

In Nigeria, the price of a bag of onion spiked by 37% to N55,000 in August owing to seasonality effects. Despite being the top producer of the commodity in Africa with an estimated production of two million tons, Nigeria still imports onions to meet the 500,000 ton supply deficit. Recently, India, the world’s second-largest producer of onion, imposed a 40% export duty on the commodity, which will limit the global supply and bolster onion prices in the coming weeks. For Nigeria, this will translate into a higher import bill and further stoke inflationary pressures.

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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