Oil Nearly Closes Flat As Extreme Cold Impacts US Output

Taiwo  Adekeye, FMVA

January 18, 2024

Temperatures below zero degrees Fahrenheit led oil output in North Dakota, one of the top oil-producing states in the US to drop by 650,000 to 700,000 barrels per day (bpd), more than half of its usual output. Brent crude futures slipped by 41 cents to $77.88 a barrel while U.S. West Texas Intermediate crude futures (WTI) gained 16 cents to close at $72.56.

Nigeria: CBN clear 14 Banks’ FX backlogs, focuses on airlines

CBN has successfully settled the foreign exchange forwards liability of 14 banks and settlements with foreign airlines have commenced. The Africa’s largest economy has about $7 bln FX backlog uncleared having negative impact on the nation’s currency. About $2 billion of the backlog across sectors such as manufacturing, aviation, and petroleum has been totally cleared.

South Africa:  Inflation predicted to average 5% in 2024

Lesetja Kganyago, the governor of the South African central bank, stated on Wednesday that he anticipated inflation to average 5% this year and that the process of disinflation had started. However, The South African Reserve Bank (SARB) targets inflation between 3% and 6%. Amid rising food costs, annual inflation dropped for the first time in four months in November to 5.5% due to cooling fuel prices.

India: India seeks $100 bln annual foreign direct investment in upcoming years

India is eyeing $100 billion in annual FDI in the coming years as Prime Minister Narendra Modi seeks to attract investors ahead of a reelection bid. The Asian economy is forecasting 6-8% consistent growth rate over the next full decade. India attracted FDI inflows of $33 billion in the first six months of the current financial year that started in April 2023, It also recorded FDI of $71 billion in the 2022-23 financial year.

China:  GDP expands 5.2% in Q4

China’s economy expanded 5.2% in the fourth quarter from a year earlier, falling below forecasted growth target. The data suggested the economy was starting 2024 on a fragile note with continuous deflationary pressures and a minor surge in exports unlikely to kindle a quick turnaround in weak domestic activity. The world number 2 economy has struggled to regain traction, with a disappointing and short-lived post-COVID pandemic bounce.