Akintunde Oyedokun
Research Analyst
Oil prices were largely flat on Monday as easing tensions in Iran reduced fears of supply disruptions. Brent crude slipped to about $63.8 a barrel, while U.S. WTI traded near $59.
With Iran concerns receding, markets are watching the U.S.–Europe dispute over Greenland and possible trade fallout, alongside risks to Russian supplies and a temporary output halt at Kazakhstan’s Tengiz oilfields.
Canada Inflation Rises, Core Measures Ease
Canada’s inflation rose to 2.4% in December, above expectations, mainly due to a base effect from last year’s sales tax break. However, core inflation measures continued to cool, easing for the third straight month. This trend supports the Bank of Canada’s plan to keep interest rates steady, as underlying price pressures remain close to the 2% target. Falling gasoline prices helped moderate overall inflation despite higher costs in restaurants.
China’s 2025 Growth Driven by Exports, Domestic Demand Weak
China’s economy grew 5% in 2025, hitting government targets by relying on exports, resulting in a record $1.2 trillion trade surplus. While shipments to the U.S. fell, sales to Europe and Latin America surged. However, domestic-focused sectors lagged, with retail sales up 3.7% and property investment down 17.2%. Analysts warn that without boosting consumer spending, long-term growth may slow, as reliance on exports is increasingly unsustainable.
Libya Devalues Dinar By 14.7% Amid Turmoil
Libya’s central bank cut the dinar by 14.7% to 6.3759 per dollar, citing political divisions, falling oil revenues, and economic challenges. The oil-dependent nation has struggled to stabilize its economy since the 2011 uprising and the 2014 split between rival administrations.
The devaluation follows a 13.3% cut in April 2025. Analysts warn that rising public spending and fluctuating oil production may continue to pressure the economy.
IMF Boosts Nigeria’s 2026 Growth Forecast to 4.4%
The IMF raised Nigeria’s 2026 growth projection to 4.4% from 4.2%, citing progress in fiscal reforms, macroeconomic stability, and productivity improvements. The revision aligns with a broader regional recovery in Sub-Saharan Africa and reflects optimism about the medium-term impact of ongoing policy measures. The upgrade signals growing investor confidence in Nigeria’s economic trajectory.
