Brent futures rise 5.47% to $107.81pb
Brent futures surged 5.47% to $107.81pb amid fears that a prolonged Middle East conflict could further disrupt oil supply. This comes after reports that Iran is reviewing a U.S. ceasefire proposal but has rejected negotiations, while Trump warned of consequences if the plan is not accepted.
NNPC Limited falls short on crude supply to Dangote Refinery
Dangote Refinery disclosed that it currently receives only five crude cargoes per month from NNPCL, far below the agreed fifteen under the crude-for-naira arrangement. This has forced Dangote Refinery to source crude internationally at higher costs to make up for the shortfall, thereby eroding the intended benefits of the crude-for-naira deal. The supply gap could be attributed to prior commitments and the impact of creek economics, which have led to a decline in domestic oil production.
Aluminium prices surge 7.34% to $3,545/tonne
Aluminium prices surged 7.34% (YTD) to $3,545/tonne, marking a four-year high, driven by depleted inventories and worsened by supply disruptions linked to the Strait of Hormuz closure. With prices expected to remain elevated, construction costs in Nigeria will rise, further driving up rental prices, which already consume over 50% of household incomes.
FDC’s Assistant Vice President and Head of Research, Dr. Ifeoma Nwokolo, and analyst Favour Adekunle discussed these and other burning economic issues on Channels TV Business Morning and Business Incorporated, respectively.