Brent futures lost after a three-day winning streak; Angola pulled out of OPEC
After testing a 6-week high of $80.55pb, Brent futures slid back to $78pb on the news of Angola’s exit from OPEC. As a cartel, OPEC’s grip on the market has become a little slack due to the vulnerability of members with sluggish economies and weak currencies. This is coming at a time when Goldman Sachs revised the Brent price target for 2024 downward by 10% to a range of $70pb – $90pb.
More fertilizer, less agricultural production in Nigeria
The price of a 50kg bag of NPK fertilizer in Nigeria surged by 112.5% to N17,000 from N8,000, while the average price of a 50kg bag of urea also spiked by 185% to N17,000 within the same period. The hike in their respective prices is largely supported by smugglers that export fertilizers meant for farmers and the terrorists that use it for their nefarious activities. Rising prices of fertilizers has resulted in lower crop yields, which has impeded the agricultural sector’s growth (slowed to 1.3% in Q3’23 from 1.34% in Q3’22) and pushed food inflation to a record high of 32.84%. However, there is a glimmer of hope as the Dangote Urea Fertilizer plant will not only increase the availability of fertilizers in the country but also reduce the price of the commodity.
These and other burning economic issues were discussed on Channels TV Business Morning Programme by FDC’s Associate, Mayowa Esther and Business Incorporated by Associate, Adediran Halimah.
Click the link to watch the video.
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