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Brent gained 1.42% to $72,42pb as the U.S. plans to build reserve

After losing 6% yesterday, Brent crude futures rose 1.42% to $72.42pb, driven by the U.S. plan to purchase 3 million barrels for its Strategic Petroleum Reserve—a move signaling a possible demand boost in the coming months. Additionally, Israel is working to negotiate a deal to return some hostages in exchange for a short cease-fire in Gaza. This could ease geopolitical risks, helping to stabilize the oil supply and reduce short-term price volatility.

Naira hits a record low, depreciating to N1,747/$ and N1,670.75/$

On Monday, the naira fell to a two-week low, reaching 1670.75/$ in the official market and 1747/$ in the black market. This decline occurred as dollar liquidity dropped by 72% to $81 million, marking the lowest level in over a month. We expect the naira to stabilize as the CBN increases forex supply through the sale of dollars to authorized Bureau de Change (BDCs).

The price of a can of Sardines surged by 87.5% to N1,500 (yoy)

The price of a 125g can of sardines rose sharply to N1,500 in October 2024, triggered by exchange rate depreciation and elevated import tariffs. This resulted in consumers excluding sardines from meals like sandwiches, salads, yams, etc. While the price remains elevated in the near term, demand for sardines remains inelastic, with consumers opting for alternative substitutes.

FDC’s senior associate, Dumebi Oluwole and analyst, Rosemary Adibe, 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!