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Brent exceeds $87pb on expectations of increased summer demand

Oil prices rose by 0.87% to $87.35pb today, driven by the expectations of higher demand during the summer. The American Automobile Association forecasts a 5.2% increase in holiday travel to 60.6 million in 2024, up from 57.8 million in 2023. Additionally, escalating Middle East tension, highlighted by a drone attack in Northern Israel, also supported oil prices.

Cocoa recovered after plunging to a one year low

The price of cocoa surged by 6.06% to $7,735/mt today, due to reduced cocoa inventories. This is after a stockpile of cocoa inventories held in the U.S. ports fell to a 3-1/2 year low. Considering forecasts of pod disease outbreaks and extreme weather conditions by the Economist Intelligence Unit, we expect cocoa prices to remain bullish in the near term.

FDC’s senior associate, Dumebi Oduwole, and analyst, Oluwaseun Lawal, 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!