Akintunde Oyedokun
Research Analyst
Oil prices rose on Monday as expectations of colder weather in the U.S. and Europe drove up demand for diesel as a heating alternative. Brent crude settled at $74.39 a barrel, gaining 0.3%, while West Texas Intermediate crude increased 0.6% to $70.99 a barrel. Diesel futures surged 2.5% to $2.30 per gallon, marking their highest level since November, supported by declining U.S. crude inventories and heightened heating needs. Natural gas futures also jumped 17%, fueled by weather concerns and export growth, while global markets await key economic data from China and the U.S. amidst oversupply fears for 2025.
South Korea’s Factory Output Falls Sharply Amid Slowing Exports, Weak Confidence
South Korea’s factory output declined by 0.7% in November, a sharper fall than the 0.4% predicted by economists, as reported by Statistics Korea. On an annual basis, output growth slowed significantly to 0.1%, down from 6.3% in the previous month.
Export growth dropped to a 14-month low last month, with shipments to key markets like the United States and China affected by ongoing tariff uncertainties. Business sentiment also plummeted, hitting its lowest level in over four years, further reflecting the challenges faced by the economy.
U.S. Pending Home Sales Rise For Fourth Month In November
Pending home sales in the U.S. increased by 2.2% in November, marking the fourth consecutive month of growth as buyers took advantage of higher inventory despite persistent high mortgage rates. The Pending Home Sales Index reached 79.0, the highest since February 2023.
With mortgage rates above 6% for 24 months, buyers have adjusted expectations and are negotiating better deals, while inventory levels rose nearly 18% compared to last year. Year-over-year sales rose 6.9%, with the Midwest, South, and West regions showing gains.
South Africa Set to Increase Fuel Prices: Petrol Up By 19 Cents, Diesel By 10.50 Cents Starting January 1, 2024
The South African government has officially announced that, starting January 1, 2024, petrol prices will rise by up to 19 cents per litre, while diesel prices will increase by up to 10.50 cents per litre. This price adjustment is part of the country’s regular monthly review of fuel prices, which is influenced by a combination of global oil price fluctuations, domestic demand, and changes in the exchange rate of the rand. While these adjustments may bring some financial strain to consumers, the government reassures that it is necessary to maintain economic stability and support the broader energy market. The price changes will impact various sectors, including transportation and goods distribution, contributing to overall inflationary pressures in the economy.
Nigeria Resumes Operations At Warri Oil Refinery After Nearly A Decade
Nigeria has resumed partial operations at its Warri oil refinery after almost ten years of shutdowns, following years of neglect and mismanagement. The 125,000 bpd refinery, now running at 60% capacity, marks a step toward revitalizing the country’s moribund refineries. Nigeria’s state-owned refineries, including the Warri plant, have faced long-term closures. The government aims to revive all four state refineries, with the Port Harcourt refinery already operational. Additionally, the privately-owned Dangote refinery began production this year.
