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Oil prices rally on mounting supply concerns

Brent gained 1.70% today, reaching $95.07pb for the first time in 2023. This spike was buoyed by comments made by Saudi energy minister, Prince Abdulaziz bin Salman, suggesting that OPEC is working to keep oil markets stable. In Q2’23, OPEC crude oil output declined by 2.82% to 28.28mbpd from 29.10mbpd in Q4’22.

As investors await the US Fed’s interest rate decision tomorrow (September 20), analysts are projecting a hawkish pause, a policy move that may weaken the dollar and support further increases in the price of oil.

Coffee futures expected to soar further

Coffee futures surged by 1.79% to $162/lbs on September 19th, up from $159/lbs on September 15th. This price increase can be attributed to adverse weather conditions in Brazil, the world’s leading coffee producer. Simultaneously, a growing global demand for coffee has initiated an upward trajectory, exacerbating the supply deficit and bolstering coffee prices.

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

Click the link below to watch the video.

Enjoy your read!