Global oil prices have been very volatile in the last 24 hours, triggered by a combination of various factors including the reimposition of lockdowns by more European countries, Libya’s rising oil production and uncertainty surrounding the US elections. With oil prices trading below the 2021 budget benchmark of $40pb, and Nigeria’s oil production sharply lower at 1.4mbpd, the government’s revenue projections may need to be revised.
Cocoa prices in Nigeria are moving in mixed directions depending on the location. In Edo state, cocoa prices are increasing while in Osun, prices have remained relatively flat. With oil prices trading lower, Nigeria’s external reserves, which have depleted by $50mn in one month, would benefit from more robust cocoa prices.
The slides provide a snapshot of the discussion in the Commodities segment of the Business Morning Programme on Channels TV by the Head of the FDC Think Tank.
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