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Tuesday, November 03, 2020 / 06:27 PM / FDC / Header Image Credit: FDC Limited
Global oil prices have been very volatile in the
last 24 hours, triggered by a combination of various factors including the
reimposition of lockdowns by more European countries, Libya's rising oil
production and uncertainty surrounding the US elections. With oil prices
trading below the 2021 budget benchmark of $40pb, and Nigeria's oil production
sharply lower at 1.4mbpd, the government's revenue projections may need to be
revised.
Cocoa prices in Nigeria are
moving in mixed directions depending on the location. In Edo state, cocoa
prices are increasing while in Osun, prices have remained relatively flat. With
oil prices trading lower, Nigeria's external reserves, which have depleted by
$50mn in one month, would benefit from more robust cocoa prices.
The slides below provide a snapshot of the discussion in the Commodities segment of the Business Morning Programme on Channels TV by the Head of the FDC Think Tank.
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