Global Market Update: Oil Prices Drop To Lowest Point In Nearly 5 Months

Taiwo Adekeye, FMVA

December 6, 2023
The oil market experienced a consistent decline in a row for four days amid demand concern ever since Opec+ announced voluntary supply cut last week. The southward came despite Opec+ stance on deepening supply cuts by 2.2mmbpd in Q1′ 2024. Brent crude oil futures dropped by 1.1% settling at $77.20 per barrel, while U.S. West Texas Intermediate crude (WTI) concluded 1.0% lower to end at $72.32. However, In the week ending December 1, crude stocks increased by 594,000 barrels.
Nigeria: Equity investors gain N166 billion as NGX rebounds by 0.43%
The local bourse rebounded by 0.43% after a previous decline to close at 71,250.17 points. The market capitalization closed at N38.989 as equity investors gained N166 billion. The movers of the market were primarily the stocks of ACCESSCORP, UBA, ZENITHBANK, FBNH AND MTN. Transaction volume increased from N358.53 million to N433.57million valued at N11.1billion. The major gainers were led by stocks of NSLTECH, MULTIVERSE AND SUNUASSUR while ABBEYBDS, FTNCOCOA, and DAARCOMM led the losers. The year-to-date (YTD) performance of the market currently stands at +39.02%.
South Africa: The Zar declines as Q3′ GDP contracts.
The USD rose on the international market while the ZAR and Q3′ GDP fell concurrently beyond expectation. The Rand fell 1% lower than its previous close against the USD closing at 18.9950/$. The Q3′ GDP contracted by 0.2% QoQ and 0.7% YoY. The most robust economy in Africa expanded by 0.3% in the first nine months of this year, providing more proof that its recovery from the COVID-19 epidemic has been among the weakest among developing economies.
Kenya: Kenya Hikes rate by 200 basis points.
Kenya’s central bank announced a significant increase in interest rates with the goal of stabilizing the shilling, whose decline has fueled inflation, reduced foreign investment, and impacted debt payments. The CBK increased its policy rate by 200 basis points to 12.5%, marking the first increase since 100 basis points increase in June. This year, the shilling has lost over 19% of its value relative to the dollar, while inflation decreased from 6.9% YoY in October to 6.8% in November.
China: China’s visa free travel policy boosts tourism
The visa-free travel policy has indeed yielded noticeable benefits, simplifying the journey for travelers. China’s Ministry of Foreign Affairs remains committed to refining visa policies to enhance conditions and facilitate seamless cross-border travel. The policy, encompassing multiple European countries and Malaysia, was implemented on December 1. In the initial three days of the month, approximately 7,000 out of nearly 18,000 travelers from France, Germany, Italy, the Netherlands, Spain, and Malaysia—countries covered by the visa waiver—entered China.
Russia: Russia has introduced its Mir payment cards in Cuba.
Russia’s National Card Payment System has introduced its Mir payment cards in Cuba, marking the Caribbean island as one of the few countries to adopt Moscow’s alternative to Visa and Mastercard. Payment cards issued by Mir have become more important since its U.S. rivals suspended operations in Russia after Moscow sent tens of thousands of troops into Ukraine, and their payment cards which were issued in the country stopped working abroad. However, in some countries like Turkey, Kyrgyzstan, and Tajikistan, banks suspended Mir transactions after the U.S. Treasury listed the head of NSPK (National Card Payment System) on its sanctions list and indicated that those collaborating with NSPK might also be subject to restrictions.

Sign In

Register

Reset Password

Please enter your username or email address, you will receive a link to create a new password via email.