Akintunde Oyedokun
Research Analyst
Oil prices rose by more than 1% on Monday, with Brent crude reaching $72.14 and WTI at $68.37. The climb was attributed to heightened geopolitical risks following the ousting of Syrian President Bashar al-Assad and China’s efforts to stimulate growth through looser monetary policy, which sparked expectations for increased demand. However, the market also faced uncertainty due to Saudi Aramco’s price cuts and the anticipation of upcoming U.S. inflation data, which could influence market sentiment.
Japan’s Q3 Economy Surges, But Weak Consumption Raises Rate Hike Concerns
Japan’s economy expanded by an annualized 1.2% in Q3, surpassing the initial 0.9% estimate, driven by stronger capital investment and exports. However, slower-than-expected private consumption growth at 0.7% raises concerns about the sustainability of the recovery, leaving the timing of a Bank of Japan rate hike uncertain.
The BOJ will review the data during its Dec. 18-19 meeting, with analysts divided on whether a rate increase from 0.25% is warranted, despite ongoing inflation concerns and wage growth.
China’s Inflation Slows, Factory Deflation Continues Amid Economic Struggles
China’s inflation eased to a five-month low in November, driven by lower fresh food prices, while factory deflation persisted. The consumer price index (CPI) rose by 0.2% year-on-year, below forecasts, and factory prices fell 2.5%. Despite stimulus efforts like a massive debt package, China’s economic recovery remains weak, with economists concerned about the impact of potential U.S. tariffs and ongoing challenges in the property market. Fitch Ratings has downgraded growth expectations for 2025 and 2026.
Mauritius Economy In Worse Shape Than Expected, Says New Prime Minister
Mauritius’ new Prime Minister, Navin Ramgoolam, revealed that the country’s economy is in worse condition than anticipated as an audit into public finances nears completion. Following his coalition’s election victory in November, Ramgoolam accused the previous government of manipulating economic data to present a misleadingly positive outlook. The audit findings, which are expected to shock the public, have yet to be supported by specific figures. The rising cost of living was a major issue in the recent election, with economic growth of 7% last year not easing voter concerns.
After Inspection Tour, Nigeria’s Labour Leaders Confirm P/Harcourt Refinery Fully Operation
The Nigerian National Petroleum Company Limited (NNPCL) revealed that NLC President Joe Ajaero and TUC President Felix Osifo confirmed the Old Port Harcourt Refinery is fully operational after an inspection on Monday. They, along with union leaders, affirmed the refinery’s output and product quality.
This follows confirmation from PENGASSAN about the refinery’s resumed production. Despite community concerns over product quality and production volume, NNPCL defended the process, stating the facility is running at 90% capacity.
