Akintunde Oyedokun
Research Analyst
Oil prices slid over 2% on Wednesday after OPEC projected that global supply will meet demand by 2026, easing previous deficit expectations. Brent settled at $63.81 per barrel, and WTI at $59.68. Rising non-OPEC+ output and softer demand forecasts fueled oversupply worries, while the IEA now expects oil demand to grow until 2050.
Analysts noted that despite OPEC+ pausing production hikes, market sentiment remains cautious amid fears of persistent supply surplus.
India’s Inflation Drops to Record 0.25% in October
India’s retail inflation fell to 0.25% in October, its lowest on record, as food prices and consumer taxes declined. The drop keeps inflation below the RBI’s 2%-6% target, raising hopes for a December rate cut. Food costs fell 5%, though core inflation stayed high at 4.4% due to rising gold prices.
Analysts expect continued monetary easing to support growth amid global trade pressures.
Italy’s Industrial Output Rebounds Strongly in September
Italy’s industrial production rose 2.8% in September after a sharp 2.7% drop in August, beating forecasts and marking the strongest gain since early 2023. Analysts warned the rebound may be temporary due to summer volatility, though outlooks for the fourth quarter remain slightly positive. The economy stagnated in Q3, leading Rome to cut its 2024 growth forecast to 0.5%.
The rebound offers a glimmer of hope for Italy’s struggling manufacturing sector.
South Africa Cuts Inflation Target to 3% for First Time in 25 Years
South Africa has lowered its inflation target from 3%-6% to 3%, with a 1% tolerance band, marking the first change in 25 years. The phased implementation over two years aims to anchor inflation expectations and allow for lower interest rates. The move is seen as a step toward economic reform and monetary stability. The rand and long-dated bonds rallied following the announcement, while the Treasury slightly revised the budget deficit to 4.7% of GDP.
Nigerian Senate Approves N1.15 Trillion Loan To Cover 2025 Budget Deficit
The Nigerian Senate has approved President Tinubu’s request to borrow N1.15 trillion domestically to close the 2025 budget deficit. Oversight committees will monitor the use of funds to ensure transparency and proper allocation, as part of the government’s broader fiscal strategy for growth, infrastructure, and social programs.
The loan will specifically cover the N1.147 trillion gap left after previously approved borrowing of N12.95 trillion.
