Akintunde Oyedokun
Research Analyst
Oil prices closed slightly lower on Friday, the first trading day of 2026, with Brent settling at $60.75 per barrel and WTI at $57.32. Despite ongoing geopolitical tensions, oversupply worries continued to dominate market sentiment.
Crude benchmarks had posted their steepest annual losses since 2020 in 2025, reinforcing cautious trading at the start of the new year. Market attention is now fixed on the upcoming OPEC+ meeting, where producers are expected to maintain a pause on output increases.
Italy Manufacturing Slips Back Into Contraction
Italy’s manufacturing sector fell back into contraction in December as output and new orders weakened. The HCOB Manufacturing PMI dropped to 47.9 from 50.6 in November, marking the sharpest deterioration since March. The sector has remained under pressure since early 2023, reflecting ongoing softness in industrial activity despite modest growth expectations for 2026. Economists warn that continued weakness could weigh on the country’s broader economic recovery.
UK Manufacturing Grows, But Confidence Wavers
Britain’s manufacturing sector expanded in December at its fastest pace in 15 months, with the PMI rising to 50.6. Growth was driven by stock-building and slight increases in new orders, while exports and hiring showed early signs of stabilization. However, business confidence fell, and concerns remain over high costs, taxes, global uncertainties, and inflation. The Bank of England’s recent rate cut may help demand, but sustaining growth into 2026 is uncertain.
Egypt Secures LNG Deal with Qatar to Strengthen Energy Supply
Egypt and Qatar agreed on up to 24 LNG shipments to Egypt’s ports this summer, helping the country address falling domestic gas output and advance its goal of energy self-sufficiency. The deal covers deliveries to Ain Sokhna and Damietta ports and is part of Egypt’s broader strategy to diversify import sources. Officials say this cooperation will also support Egypt’s ambition to become a regional energy hub.
Nigeria Launches 2026 Growth Strategy
Nigeria’s government unveils its 2026 plan to boost jobs, attract investment, and drive growth. Focus areas include stable macroeconomics, deepening capital markets, expanding credit for small businesses, and leveraging development finance institutions. The strategy aims to restore investor confidence and reduce reliance on oil. It signals a clear shift toward private-sector-led economic expansion.
