Akintunde Oyedokun

Research Analyst

Oil futures dropped nearly 2% on Wednesday as investors awaited OPEC+’s decision on extending production cuts. Brent crude fell 1.78% to $72.31 per barrel, while U.S. WTI declined 2% to $68.54. A large sale of U.S. oil futures further pressured prices, despite a sharper-than-expected draw in U.S. crude stocks. Analysts expect OPEC+ to extend output cuts into early 2025.

Geopolitical tensions, including a fragile truce between Israel and Hezbollah and unrest in South Korea, added complexity to market dynamics.

Spain’s services sector grew at its slowest pace since January, with the HCOB Spain Services PMI dropping to 53.1 in November from 54.9 in October, partly due to catastrophic floods in Valencia that claimed over 200 lives and disrupted business. Despite the slowdown, firms continued hiring for the 26th consecutive month to manage increased workloads, though input costs remained high due to rising wages. The composite PMI, which includes both manufacturing and services, fell to 53.2, marking the weakest expansion since January, with the central bank estimating the floods may reduce Q4 GDP by 0.2%.

UK services growth weakened in November, with the S&P Global Services PMI slipping to 50.8 from 52.0 in October. Concerns over higher employer taxes and wage costs led to a slowdown in hiring and a drop in business optimism. The survey showed a rise in input costs, particularly wages, and weaker demand. The composite PMI fell to a 12-month low of 50.5, signaling growing uncertainty, while the Bank of England monitors inflation and economic risks.

U.S. services sector activity slowed in November, though it remained above levels indicating healthy economic growth for the fourth quarter. The ISM survey highlighted concerns about potential tariffs from President-elect Trump, which could lead to higher prices. Despite these worries, the economy’s outlook is optimistic, with the Fed’s Beige Book showing slight growth and business confidence for the coming months. The services PMI fell to 52.1, still signaling expansion, while tariff uncertainty impacted sectors like construction and technology.

Ghana’s consumer inflation rose to 23.0% in November, up from 22.1% in October, driven by higher food prices, particularly vegetables, tubers, and plantains, according to government statistician Samuel Kobina Annim.

The central bank kept its interest rate at 27.00% last week due to persistent food price pressures.

Ghana is still recovering from its worst economic crisis in decades, with the IMF approving the third review of its $3 billion loan program and disbursing $360 million.

The Nigerian Senate has approved the 2025–2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF-FSP), clearing the way for a N47.9 trillion budget for 2025. The proposal includes N16.4 trillion for capital projects and N14.2 trillion for recurrent spending. Key economic projections, such as oil prices, production, and an exchange rate of N1,400/$1, were also approved, alongside a N9.22 trillion borrowing plan and N15.38 trillion for debt servicing. The approval follows comprehensive reviews to guide the country’s fiscal and economic strategy.