Global Market Update: Oil May Close 2023 10% lower As Production Cuts Trigger Prices

Taiwo  Adekeye, FMVA

December 29, 2023

Oil prices are set to end 2023 about 10% lower, the first annual decline in two years, after geopolitical concerns, production cuts and global measures to rein in inflation triggered wild fluctuations in prices. Brent crude futures were up 18 cents closing at $77.33 while the U.S. West Texas Intermediate (WTI) crude futures were trading 11 cents higher at $71.88 a barrel

Ethiopia: Fitch rates Ethiopia’s Eurobond as “default” due to missed payment.

Fitch on Wednesday downgraded the rating on Ethiopia’s only international government bond to “default” from “near default” after the east African country failed to make a $33 million coupon payment. The agency also lowered Ethiopia’s long-term foreign currency rating to “RD” or restricted default, from “C”.

South Africa: The Rand remain firm, bond yield down by 1 basis point.

South Africa’s rand firmed in thin trade on Wednesday, ahead of the last economic data releases of the year later this week. The rand traded at 18.5075 against USD, about 0.8% stronger than its previous close. South Africa’s benchmark 2030 government bond was marginally stronger, with the yield down 1 basis point at 9.735%.

Russia: Russian budget expenditure in 2023 to total 32.2 Trillion roubless.

Russia’s federal budget expenditure in 2023 totaled 32.2 trillion roubles ($351.45 billion). The figure is almost 11% higher than the initially approved total expenditure for this year of 29.06 trillion roubles. The increase reflect a sharper rise than previously estimated in military spending as Russia continues to wage what it calls a special military operation in Ukraine.

Turkey: Turkey increases monthly minimum wage by 49% for 2024.

Turkey’s monthly minimum wage will be 17,002 Turkish lira ($578.31) in 2024, marking a 49% increase from the level determined in July and a 100% hike from January.  Turkey’s annual inflation rate edged up to 61.98% in November, its highest level this year, signaling that an aggressive rate-hiking cycle might be essential.

India: Rupee weakens slightly due to foreign banks dollar demand.

The Indian rupee weakened on Wednesday, pressured by dollar demand from large foreign banks, even as most of the local unit’s Asian peers ticked higher. The rupee was at 83.2475 against the U.S.D lower by 0.07% compared to its close of 83.1925 in the previous session. India’s current account deficit fell more than expected in Q3′ to $8.3 billion, 1% of the GDP, from $9.2 billion, in the preceding quarter.

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