Akintunde Oyedokun
Research Analyst
Oil prices gained on Tuesday as U.S. sanctions on Russian oil firms tightened global supply, though oversupply worries limited the rally. Brent crude rose to $64.73 per barrel, while WTI climbed to $60.78. The sanctions disrupted fuel exports, boosting diesel and gasoline margins in Europe. However, growing output from OPEC+ and expectations of further supply increases next year are keeping oil prices under pressure.
Brazil Inflation Eases Sharply, Boosting Rate-Cut Hopes
Brazil’s inflation slowed to 0.09% in October from 0.48% in September, below expectations, mainly due to lower electricity costs. Annual inflation fell to 4.68%, giving the central bank more room to ease policy. The Selic rate remains unchanged at 15%, but analysts expect a possible rate cut early next year as economic growth weakens. The latest figures signal that price pressures are easing steadily across key sectors. Investors now anticipate a more dovish stance from the central bank in the coming months.
Australia’s Consumer Confidence Hits Four-Year High
Australian consumer sentiment turned positive in November for the first time since early 2022, driven by improved optimism about family finances and the economy. The Westpac–Melbourne Institute index jumped 12.8% to 103.8, its highest in seven years. Confidence in major household purchases also strengthened. Despite the upbeat outlook, the Reserve Bank of Australia kept interest rates steady at 3.6%, while markets see a possible rate cut by May 2025.
South Africa’s Jobless Rate Dips to 31.9% in Q3
South Africa’s unemployment rate eased to 31.9% in the third quarter from 33.2%, driven by job gains in construction, trade, and social services. Improved power supply and logistics supported modest growth, though weak demand continues to limit investment and broader job creation.
Stats SA’s updated methodology captured more informal jobs, boosting reported employment, while economists note that higher business investment is needed for sustained reductions in unemployment.
Nigeria’s Oil Profit Slides Despite Revenue Gains
Nigeria’s oil and gas gross profit fell 43% in 2024 to N1.08 trillion, even as total revenue rose 80% to N15.07 trillion. Gross profit now makes up just 7.2% of revenue, down from 22.8% in 2023.
Quarterly profits were uneven, with Q2 particularly weak. Strong tax, royalty, and FX inflows lifted net oil revenue to N12.95 trillion, but high costs and joint-venture arrangements limited underlying profitability.
