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Brent fell to $82.47pb on doubts of U.S. interest rate cuts

Brent crude dipped by 1.48% to $82.47 per barrel today, driven by expectations that rising U.S. inflation would keep interest rates higher for longer. The decline in oil prices followed comments from the U.S. Federal Reserve vice chairs, Philip Jefferson and Michael Barr, that the slight easing of inflation from 3.5% in March to 3.4% in April was insufficient to justify a rate cut. In this light, oil prices are expected to remain volatile as the market weighs lingering demand and supply concerns.

Domestic commodity prices are mixed

Nigerian commodity prices are mixed as producers use local raw materials to reduce costs. A carton of 70g noodles dropped 28.57% from N10,500 in February to N7,500 in May by substituting 30% wheat with cassava. The price of a 10kg bag of semovita fell by 3.94% to N12,200, while wheat (10kg) remained stable at N12,200. However, tomato prices soared by 90% to N90,000 due to seasonality and logistics costs. Prices are expected to moderate in the near term due to lower transportation costs.

FDC’s M.D. Mr. Bismarck Rewane discussed these and other burning economic issues on Channels TV Business Morning.

Click the link to watch the video.

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