Brent rose by 0.64% to $76.54pb, fueled by a decline in U.S. crude stockpiles to their lowest level since November 2023. The Energy Information Administration (EIA) reported a 1.08% fall in inventory levels, from 430.68 million to 426.03 million barrels, surpassing analysts’ expectations of a 2.6 million barrel draw. In Nigeria, the lingering fuel scarcity is beginning to ease with the average price of PMS dropping sharply to N800/litre. The attendant effect of the falling price of PMS on transportation and logistics costs is having a knock-on impact on domestic commodity prices.
Prices of Arabica and Robusta coffee surged to $2.57/lb and $2.15/lb (YTD) on global demand
Arabica and Robusta coffee prices surged by 34.43% and 138.89% (YTD)due to rising consumption in China, where coffee shops grew by 58% to 50,000 in 2023. Supply shortages from Brazil, Vietnam, and Colombia have exacerbated the price increase. Nigeria has the potential to be a major player in the global coffee market. Increasing yields and adopting modern farm practices are imperative for this goal to materialize, boost Nigeria’s export earnings in the medium-long term.
FDC’s MD, Mr. Bismarck Rewane and senior analyst Victoria Momoh discussed these and other burning economic issues on Channels TV Business Morning and Business Incorporated programmes, respectively.
