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Brent slips despite rising Middle East tension

Brent futures fell by 1.14% to $75.16pb on December 12, despite earlier gains driven by lower than expected inflation data in the US (3.1% in November) and the likelihood that the Fed will hold rates the same. The decline in oil prices was further supported by concerns about excess global oil supply and weak demand, which offset lingering supply risks. In the near term, investors will continue to trade tentatively with focus on the US Fed’s rate decision.

India bans its onion exports in a bid to improve domestic supply

India is one of the world’s largest exporters of onions, contributing over 12% to the global onion trade. On December 11, its government placed a ban on the export of the commodity until March 31, 2024, with the aim of improving the local availability of the vegetable. This has spurred price increases in various countries like Nepal and Bangladesh which rely heavily on India’s onion exports.

In Nigeria, the price of onion has climbed by (21.74% MoM) from N115,000/bag to N140,000/bag in December, with seasonality being the major driving factor. The closure of the border with Niger Republic, one of the largest exporters of onion in Africa has further worsened the situation as the level of smuggling increases.

These and other burning economic issues were discussed on Channels TV Business Morning Programme by FDC’s Associate, Dumebi Oluwole and Business Incorporated by senior analyst, Miriam Odey.

Click the link to watch the video.

Enjoy your read!