Oil prices touched $70pb for the first time since mid-March on improved oil demand amid the ease of restrictions in the U.S, UK and some European countries. The bullish outlook for oil is further bolstered by the pent-up travel demand that is set to be let loose in the summer with the resumption of international flights. This could push Brent further up to $75pb by June. While this is positive for fiscal and external accretion, the fuel subsidy debacle will present itself again, this time more ferociously.
Domestic commodity prices are still rising in spite of conflicting data from the NBS. Has inflation peaked? Or what could possibly be moderating the impact of insecurity and supply chain disruptions on food prices? These are just a few of the questions that the MPC will ponder at their meeting next week (May 24/25).
The download below gives a snapshot of the discussion in the commodities segment of the Business Morning Programme on Channels TV.
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