Akintunde Oyedokun
Research Analyst
Oil prices hit a two-week low Monday, with Brent crude falling 1.8% to $77.08 and WTI dropping 2% to $73.17. The dip follows reports of Chinese startup DeepSeek’s energy-efficient AI model, which overshadowed U.S. energy demand projections for powering data centers.
Weak economic data from China and U.S. tariff threats further pressured prices. Analysts note manufacturing slowdowns in China and ongoing uncertainty over OPEC’s response to U.S. calls for reduced oil prices. Meanwhile, Colombia’s agreement to accept deported migrants helped avert sanctions, allowing crude exports to the U.S. to continue.
China’s Industrial Profits Decline For Third Straight Year In 2024, Amid Economic Challenges
China’s industrial profits fell 3.3% in 2024, marking the third consecutive year of decline, despite a late-year recovery with an 11% rise in December. The economy grew 5%—meeting the official target—driven by government stimulus. However, pressures from a sluggish property market, weak demand, falling factory-gate prices, and fragile business confidence weighed on growth.
Amid escalating trade risks, including potential U.S. tariffs under the new Trump administration, policymakers expanded measures to spur demand. State-owned firms saw a 4.6% drop in profits, while private firms posted a modest 0.5% gain, per National Bureau of Statistics data.
German Business Confidence Rises Slightly Amid Pre-Election Uncertainty
German business confidence improved in January, with the Ifo business climate index rising to 85.1 from 84.7, driven by a better assessment of current conditions. However, the expectations index dipped slightly to 84.2, reflecting continued uncertainty ahead of elections.
Despite gains in the services sector, weak industrial performance and pre-election uncertainty weigh on sentiment, analysts say. Economists warn growth may remain subdued amid policy challenges and a struggling economy. The upcoming February snap elections add further unpredictability.
Mozambique Central Bank Slashes Interest Rate Amid Post-Election Hiccups
Mozambique’s central bank reduced its policy rate for the seventh consecutive time, cutting the MIMO rate by 50 basis points to 12.25%. Annual inflation rose to 4.15% in December, driven by unrest following disputed elections, which have claimed over 300 lives and disrupted trade and foreign businesses. President Daniel Chapo, from the ruling Frelimo party, faces challenges including economic pressures, cyclones, insecurity, and stalled gas projects.
Nigeria’s Stat Bureau Says Cooking Gas Prices Surged By 44.62% In 2024
The price of Liquefied Petroleum Gas (LPG) has increased by 44.62% from December 2023 to December 2024, according to the Nigeria Bureau of Statistics (NBS). The cost of refilling a 5kg cylinder rose from N4,962.87 to N7,177.27, while the price for a 12.5kg cylinder jumped by 50.08%, reaching N17,274.16. Taraba recorded the highest prices for both 5kg and 12.5kg cylinders, with figures of N8,074.41 and N20,290.75, respectively. Meanwhile, Delta and Kebbi had the lowest prices for 5kg (N6,455.00) and 12.5kg (N15,733.33) cylinders. The NBS also noted that the North-East had the highest prices for 12.5kg cylinders at N18,173.90, while the North-Central had the lowest at N16,482.47. Despite the price increases, only 19.4% of Nigerian households use LPG for cooking and other purposes, highlighting challenges in accessing clean energy. The government’s recent ban on LPG exports aims to curb rising prices, though its effectiveness is yet to be seen.
