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Brent eased 0.45% to $85.62pb as investors traded cautiously ahead of U.S. consumer price data

Brent prices fell by 0.45% to $85.62pb on Tuesday after peaking at $86pb on Monday, the highest level since April 30. The previous day gains were offset by cautious trading as investors await the U.S. personal consumption expenditure report due on June 28. However, we anticipate a bullish trend for oil prices in the near term due to ongoing geopolitical tension.

Price of aviation fuel surged by 50% to N1,500/litre in May

Aviation fuel prices surged by 50% from N1,000/litre in December 2023 to N1,500/litre in May 2024, driven by scarcity and exchange rate depreciation. However, with the Dangote refinery set to start supplying the Nigerian market in mid-July, the price of aviation fuel, which accounts for 40% of airline direct operating costs, is expected to decline. The reduction in costs could translate into reduced airfares and lower inflationary pressures.

FDC’s M.D., Mr. Bismarck Rewane, and senior analyst, Terver Kumeka, 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!