Oil price plummets amid Coronavirus fears and looming price war

Must Read

Burger King Announces Grand Entry In To Nigerian Market, Promises First Restaurant In August 2021

Allied Food and Confectionary Services Limited announced exciting plans to launch and grow the Burger King® brand in Nigeria,...

List of First Bank of Nigeria Sort Codes in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...
- Advertisement -

Oil price plummets amid coronavirus fears and looming price war. Precious metals maintain their safe-haven positions while the agricultural sector remains mixed.

  • Last week, oil prices closed at record lows, as global demand continues to slip over the festering impact of the coronavirus epidemic, which was further buoyed by the failure of OPEC+ to agree on the proposed 1.5 million BPD output cut.

Oil price plummets amid Coronavirus fears and looming price war - Brand Spur

  • The inability of the planned output cut by the OPEC+ cartel came on the back of Russia’s rejection of the agenda, on the basis that the current slump in global crude oil prices was due to weakening demand as against excessive supply that can be curtailed by output cut. This also drew counter-reaction from Riyadh (the largest producer among the cartel),  as she threatened to pump more oil even at a more discount price to prospective.
  • As a result, Nigeria’s benchmark crude oil, Bonny Light, fell sharply by 8.22% w/w, to close the week at $46.33/barrel. This development puts Nigeria’s 2020 budget at a risk, given the oil price benchmark of $57/bl set in the budget document.
  • This week, we expect oil prices to remain pressured as fears of a price war may further weigh on market sentiment.
  • Last week, Wheat prices were down 2.24% w/w to $513. 50 per bushel, amid widespread of Coronavirus beyond China, hampering global demand.
  • However, Corn prices increased by 2.93% w/w to $377.25 per bushel, despite continuous rise Coronavirus beyond China.
  • Cocoa prices also increased by  0.86%  w/w  to $2,702.00/MT, despite adverse weather conditions limiting global supply.
  • Sugar prices was down by 9.96% w/w to $13.02/lbs amid weather constraints in South Africa and the US.
  • Gold and silver prices closed higher w/w by 6.75% and 5.05% to $1,672.40/oz  and  $17.21/oz  respectively, maintaining their safe have to position amid the COVID-19 epidemic.
  • We expect precious metal prices to remain on the high this week as the world battles the coronavirus epidemic and its accompanied impact on businesses and mainstream investments.
Read Also:  Wema Bank grows PAT by 43.2% to ₦2.25bn in H1’19
Read Also:  Nigerians Who Own Property in UK Panic Over New Law

DOMESTIC COMMODITY PRICE MOVEMENT IN NIGERIA

Oil price plummets amid Coronavirus fears and looming price war - Brand Spur

- Advertisement -

GTI Securities Research

- Advertisement -
Oil price plummets amid Coronavirus fears and looming price war - Brand SpurOil price plummets amid Coronavirus fears and looming price war - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Oil price plummets amid Coronavirus fears and looming price war - Brand SpurOil price plummets amid Coronavirus fears and looming price war - Brand Spur

Latest News

March 2021 Inflation Rate Rises to 18.17% as Food Inflation Jumps to 22.95%

Headline Inflation Rate Increases by 18.17% YoY In March 2021, 0.82% Higher Than February 2021 Rate The consumer price index,...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Oil price plummets amid Coronavirus fears and looming price war - Brand SpurOil price plummets amid Coronavirus fears and looming price war - Brand Spur