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Oil prices edge higher to $93pb on the EIA’s bullish outlook

Brent gained 1.38% to $93.15bp today after the Energy Information Administration (EIA) forecasts tighter markets on slimmer OPEC+ output. At $93pb, Brent has climbed to its highest level in 10 months. The EIA is forecasting that the price of Brent crude will average $92.68pb in Q4 ’23, and $91pb by Q1’24. However, oil prices could soften, as a rise in the US inflation rate to 3.7% may prompt the US Fed to hike interest rates further at their next meeting on September 19 and 20.

LNG prices are expected to increase further

After a two-month low, LNG prices rebounded to $2.75/MMBtu on September 14, up 4.56% from $2.63/MMbtu on the previous trading day. This increase is attributed to supply cuts by Saudi Arabia, prolonged strikes in Australia and increased global demand, particularly from Europe and Asia. LNG accounts for 9.24% of Nigeria’s total exports; hence, a rise in LNG prices will bolster the country’s export earnings.

Heavy rainfall leads to poor cocoa quality in Nigeria 

Cocoa futures gained 1.36% today, hitting a 46-year high of $3,712.00/mmt as supply concerns in West African cocoa-producing regions persist. Nigeria, the world’s fourth-largest cocoa producer, faces unfavorable weather conditions (heavy rainfall), which is disrupting the cocoa industry. As a result, moisture levels in cocoa beans in many producing states are now between 12% and 14%, exceeding the international standards of 7% or less. This has threatened cocoa pods and reduced output during the upcoming harvest season.

These and other burning economic issues were discussed on the Business Morning programme on Channels TV by FDC’s senior analyst, Bolanle Agbaje.

Click the link below to watch the video.

Enjoy your read!