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Brent lost 4.30% to $74.13pb as Israel refrained from attacking Iran

Brent futures dropped 4.30% to $74.13pb as Israel weighed a U.S. warning against targeting Iran’s oil infrastructure. Prices were also pressured by the IEA’s third consecutive downward revision of demand forecasts. Meanwhile, Nigeria’s oil production declined by 2.22% to 1.32 mbpd in September, the first decline in six months. Lower oil prices heighten short-term currency and inflation risks. On the expectations of stable global oil supply, we expect oil prices to remain bearish in the near term.

The average retail price of diesel increased by 64.58% to N1,406.05/litre in August

In August 2024, diesel prices surged 64.58% to N1,406.05/litre from N852.34/litre (yoy), driven by higher import costs from the naira’s 43% depreciation. The sharp increase has worsened transportation costs, fueling food inflation (37.77% as of September). However, barring any shocks to production, the Dangote Refinery’s diesel production may support prices toward N1,050/litre by December.

FDC’s managers, Dr. Ifeoma Nwokolo and 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!