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Oil prices sustain gains as OPEC+ agrees to additional production cuts

Brent futures climbed 0.19% to $83.26pb today, raising hopes for its first weekly gain in November. The rise in oil prices was supported by OPEC+’s decision to cut oil output by an additional 1mbpd in 2024 during their virtual meeting. In the near term, oil prices could trade above current levels and Nigeria’s 2024 oil benchmark of $77.96pb due to this decision. Higher oil prices will help in addressing the country’s revenue challenges and reducing the budget deficit in 2024 as export earnings increase.

Average milk price in Nigeria climbs to N400/per tin in 2023

Milk is a staple food item in most Nigerian households and an almost price inelastic commodity. This year, the average price of milk has spiked by 60% to N400 from N250 in 2022. The rise in its price has been attributed to limited supply in the country owing to rising input costs and a suboptimal irrigation system. As a result, Nigeria has a supply gap of 1.2 million tonnes with the country’s milk demand at 1.7 million tonnes and production at 500,000 tonnes. This is surprising given that Nigeria has the 14th largest number of cattle heads (20 million heads) in the world.

These and other burning economic issues were discussed on the Business Morning programme on Channels TV by FDC’s Managing Director, Mr. Bismarck Rewane.

Click the link to watch the video.

Enjoy your read!