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Brent slipped by 0.87% to $81.88pb due to an increase in U.S. crude inventories

On Thursday, Brent crude oil prices fell by 0.87% to $81.88pb, attributed to a 0.81% rise in U.S. crude inventories, reaching 459.7 million barrels. It is also buoyed by Fed’s decision to maintain interest rates between 5.25%-5.50% p.a., with only one projected rate cut in 2024. In Nigeria, oil production dropped by 2.34% to 1.25 mbpd in May, falling short of OPEC’s quota of 1.5 mbpd. This decline raises concerns about Nigeria’s production capacity and potential fiscal imbalance.

The price of Aluminium surged 15.61% to $2,600/tonne

In April, the global price of aluminium rose sharply by 15.61% to $2,600/tonne due to heightened demand for construction and industrial materials. Despite Nigeria’s significant aluminum deposits, Nigeria has not been able to ramp up production to meet domestic demand due to low investment and an energy crunch. The price of aluminum products is expected to remain elevated due to exchange rate pass-through effect on the domestic price of aluminium.

FDC’s M.D., Mr. Bismarck Rewane, and senior analyst, Halima Adediran, 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!