Akintunde Oyedokun
Research Analyst
Oil prices fell Thursday as central banks in the U.S. and Europe signaled caution on monetary policy, sparking fears of weaker economic activity and oil demand next year. Brent crude dipped 0.7% to $72.88 per barrel, while WTI crude dropped 1% to $69.91 per barrel. A stronger U.S. Dollar, slowing Chinese demand, and energy transition policies added pressure. Analysts expect a surplus of 1.2 million barrels per day in 2025, with Brent averaging $73 per barrel, though potential restrictions on Iranian exports could tighten supply slightly.
Fed Lowers Rates, Signals Inflation Challenges, Economic Uncertainty
The Federal Reserve reduced interest rates by 0.25% but warned that further cuts depend on continued progress in reducing inflation. Chair Jerome Powell emphasized caution, citing mixed inflation trends, particularly in housing.
Policymakers also began assessing potential impacts of President-elect Trump’s economic policies, including tariffs and tax cuts, which could raise inflation risks. New projections suggest core PCE inflation will remain at 2.5% through 2025, above the Fed’s 2% target. The announcement triggered market volatility, with stocks dropping and bond yields rising.
New Zealand Enters Recession With Steepest Slump Since 1991
New Zealand’s economy contracted 1.0% in Q3, following a 1.1% drop in Q2, marking the worst two-quarter decline since 1991 outside the pandemic. The downturn, fueled by widespread weakness across sectors, exceeded forecasts and prompted expectations of deeper RBNZ rate cuts, with markets pricing a 70% chance of a 50-basis-point reduction in February.
Annual GDP per capita fell 2.1%, highlighting the economic strain. Finance Minister Nicola Willis criticized central bank policies for stifling growth, as high inflation weighed heavily on household and government spending.
Tanzania Projects 6% Economic Growth in 2025 Amid Global Risks
Tanzania’s economy is projected to expand by approximately 6% in 2025, up from an estimated growth rate of 5.4% in 2024, according to a joint statement from Finance Minister Mwigulu Nchemba and Central Bank Governor Emmanuel Tutuba in a letter to the International Monetary Fund.
However, the officials highlighted several potential risks to this outlook, including the intensification of regional conflicts, heightened commodity price volatility, a global economic slowdown, and natural disasters driven by climate change. The letter, dated November 29, was publicly released by the IMF on Wednesday.
Nigeria’s Reps Seek Exclusion of NECO, UI, 22 MDAs From 2025 Budget Over Unaccounted Funds
The House of Representatives Public Accounts Committee has recommended excluding 24 Ministries, Departments, and Agencies (MDAs), including NECO and the University of Ibadan, from the 2025 budget due to repeated failures to account for prior allocations and internally generated revenue.
Chairman Rep. Bamidele Salam cited non-compliance with financial accountability requirements as the reason, emphasizing the need for transparency and governance. Affected MDAs, including the Nigeria Police Force, Ahmadu Bello University Teaching Hospital, and others, must address these issues to regain budgetary consideration.
