Akintunde Oyedokun
Research Analyst
Oil prices climbed Thursday following ceasefire violations between Israel and Hezbollah, adding geopolitical risk to markets. Brent crude rose 0.5% to $73.17 per barrel, while WTI gained 0.2% to $68.88.
OPEC+ delayed its policy meeting to Dec. 5, with discussions expected to focus on extending production cuts. Analysts anticipate no increase in output due to sluggish global demand.
German November Inflation Holds At 2.4%, Surpassing Expectations
Germany’s annual inflation rate remained unchanged at 2.4% in November, despite predictions of a rise to 2.6%. Core inflation, excluding volatile food and energy prices, inched up to 3.0%.
Falling energy costs (-3.7%) were offset by rising food prices (+1.8%), fueling concerns of persistent inflation. Analysts expect inflation to linger above 2% as wage growth continues. The data intensifies focus on the ECB’s response as it targets a 2% inflation rate amid rising eurozone figures.
RBI to Keep Rates Unchanged as Inflation Delays Rate Cuts
The Reserve Bank of India (RBI) is expected to keep interest rates steady at 6.50% during its Dec. 6 meeting, following a rise in inflation driven by soaring food prices. Economists have pushed back expectations for the first rate cut to February 2025, citing ongoing inflation concerns and RBI Governor Shaktikanta Das’s cautious stance. Despite pressures to support the economy, 62 out of 67 economists in a Reuters poll predict no rate change in December, signaling a more gradual easing cycle compared to other central banks.
Zimbabwe Projects 6% Economic Growth In 2025 On Agric Recovery
Zimbabwe’s government expects economic growth to rise to 6% in 2025, up from 2% in 2024, thanks to improvements in agriculture and power generation following a drought. Finance Minister Mthuli Ncube announced that the budget deficit would shrink to 0.4% of GDP next year. The agriculture sector is set to grow by 12.8%, while mining growth is forecasted to increase to 5.6%. Despite ongoing currency challenges, the government aims to boost public acceptance of the newly introduced ZiG currency.
PETROAN Awaits Updated PMS Price as Port Harcourt Refinery Restarts Production
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) announced that the Port Harcourt Refinery has yet to release a new price for Premium Motor Spirit (PMS). Dr. Billy Gillis-Harry, PETROAN’s National President, stated that members are still purchasing PMS at the old rate while awaiting an official price update. The refinery, now operating at 70% capacity, has begun producing and loading products. NNPC clarified that bulk sales have not started and products at retail outlets are currently sourced from the Dangote Refinery. The refinery’s restart aims to reduce Nigeria’s fuel import dependency and improve energy security.
