Akintunde Oyedokun

Research Analyst

Oil prices fell Thursday as ample supply forecasts for 2025 offset OPEC+’s decision to delay its production increase to April 2025. Brent crude settled at $72.09 per barrel, down 0.3%, while U.S. WTI dropped 0.35% to $68.30.

OPEC+ will begin unwinding 2.2 million bpd in cuts starting next April, with monthly increases of 138,000 bpd lasting until September 2026. Analysts noted the market’s surplus outlook, despite efforts to stabilize prices.

U.S. unemployment claims increased by 9,000 to 224,000 last week, signaling a cooling labor market as hiring remains weak. While claims are still low by historical standards, extended unemployment periods may keep the jobless rate above 4.0%. Economists expect the Federal Reserve to cut interest rates this month despite inflation not yet reaching its 2% target.

Nonfarm payrolls likely grew by 200,000 in November, a rebound after October’s small gain of 12,000 jobs. The Fed’s Beige Book highlights a subdued labor market with low turnover and minimal hiring activity.

South Korea’s economy expanded by 0.1% in the third quarter of 2024, according to revised data from the central bank released on Thursday. This growth figure remains consistent with the preliminary estimate from October. On a year-on-year basis, the country’s Gross Domestic Product (GDP) increased by 1.5% in the July-September period. This marks a slowdown from the 2.3% growth recorded in the previous quarter, highlighting a deceleration in economic activity.

Kenya’s central bank reduced its benchmark lending rate by 75 basis points to 11.25%, exceeding expectations, to support economic growth while keeping inflation under control. This marks the third consecutive rate cut, following similar reductions in October and August. The bank cited stable inflation, low fuel costs, and a stable exchange rate. While inflation rose slightly to 2.8% in November, it remains within the target range. The bank also urged commercial banks to lower lending rates to stimulate credit, following a decline in government securities rates. The central bank maintained its growth forecasts of 5.1% and 5.5% for the next two years.

The Group CEO of NNPC Ltd, Mele Kyari, has defended the blending process at the Old Port Harcourt Refinery, calling it essential to meet national product specifications. He clarified that blending ensures products meet local standards, preventing vehicle damage. Kyari also confirmed the refinery is operational, with loading activities ongoing. NNPC Ltd. rejected reports claiming the refinery was inactive, emphasizing its production is at 70% capacity, aiming for 90%. He invited critics, including lawyer Femi Falana, to tour the refinery. President Tinubu has praised NNPC’s progress in revitalizing the refinery.