Brent crude reached $73.30 per barrel (+3.2%) and WTI hit $69.16 per barrel (+3.2%) on Monday after Norway’s Johan Sverdrup oilfield halted production due to a power outage.
Additional supply concerns arose from reduced output at Kazakhstan’s Tengiz oilfield, while escalating conflict between Russia and Ukraine further pressured the market.
U.S. Labor Market Still Contributing to Inflation, San Francisco Fed Reports
The U.S. labor market remains a source of inflationary pressure, though to a lesser extent than in previous years, according to the San Francisco Federal Reserve. Their research shows that excess labor demand contributed 0.3-0.4 percentage points to inflation as of September 2024. Despite recent interest rate cuts by the Fed, debates persist on how much further to reduce rates. Fed Chair Jerome Powell notes labor demand is closer to balance, but the San Francisco Fed’s analysis indicates it continues to influence inflation.
RBA Sees No Stronger Monetary Policy Impact
The Reserve Bank of Australia (RBA) reported that its monetary policy isn’t more effective in Australia, even with higher household debt linked to variable interest rates. RBA Assistant Governor Christopher Kent pointed out that while mortgage arrears are rising, they remain low, similar to the U.S. Kent explained that Australian households manage rate hikes through features like extra loan repayments. The RBA has kept the cash rate at 4.35% for a year, aiming to control inflation. Kent also mentioned the RBA’s infrequent forward guidance, suggesting periodic reviews.
Resolute Mining Agrees To $160m Payment To Settle Mali Tax Dispute After CEO’s Arrest
Resolute Mining (RSG.AX) will pay $160 million to resolve a tax dispute with Mali after the government detained CEO Terence Holohan and two employees. The company has made an $80 million payment and will settle the rest in the coming months. Following the announcement, Resolute’s shares dropped by 14.3%. The detained staff, who were in Mali for discussions on business practices, are safe and receiving diplomatic support. The company confirmed that operations at its Syama mine continue without disruption.
Tinubu’s Economic Agenda Targets Growth, Poverty Reduction
Finance Minister Wale Edun reaffirmed President Bola Tinubu’s commitment to reducing poverty and boosting economic growth through reforms and investments. Speaking at the 2024 NACOFED conference in Bauchi, he highlighted subsidy removal and policies to fund infrastructure, education, and healthcare.
Governor Bala Mohammed called for collaboration to address Nigeria’s economic challenges, aligning with the theme, “Fostering Economic Growth in Challenging Times.”
