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Inflation Stays Subdued in Australia

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  • Inflation Stays Subdued in Australia

The Australian inflation number remained below expectation in the final quarter of 2017, highlighting the challenges faced by the Reserve Bank of Australia in meeting inflation target.

Consumer Price Index (CPI) which measures inflation increased by 0.6 percent in the fourth quarter of 2017, slightly below the 0.7 percent expected by economists and same as the 0.6 percent recorded in the third quarter. Indicating that improved global outlook fueling growth in emerging economies is yet to translate to rise in consumer prices.

Inflation rate rose 1.9 percent year-on-year, also below the 2 to 3 percent targeted by the central bank. The weak inflation rate has been attributed to weak wage growth even with the historic unemployment rate.

“Global competition, increased automation, decreased unionization, reduced collective bargaining and the increased casualisation of the workforce have largely contained pay increases,” said Ryan Felsman, a senior economist at CommSec.

“There is increasing uncertainty about the size and timing of how wage pressures might eventually pass through to prices.”

In an effort to boost consumer prices, the central bank left interest rate at a record-low of 1.5 percent since the second half of 2016 and experts believed the apex bank may not be raising rate anytime soon as growing job creation has failed to stimulate inflation rate for the second year in a roll.

The Australian dollar fell a quarter of a U.S. cent to 0.8045 before rebounding above 0.8087.

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CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial market.

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Oil Price Gains on Lower US Oil Inventories

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Oil Price Rise to $45 Per Barrel on Lower US Oil Inventories

Oil price expanded on Wednesday following a better than expected lower crude oil output from producers in the United States.

The data released by the Energy Information Administration showed that crude oil output from the world’s largest economy declined from 11 million barrels per day to 10.7 million barrels per day last week.

While U.S. fuel demand rose to the highest since March. The demand hits 19.37 million barrels per day in the week, highlighting a gradual increase in demand with the opening of the economy.

Also, crude oil inventories declined by 4.5 million barrels, better than the 2.9 million decline predicted by Reuters’ expertise.

The low oil inventories bolstered the price of Brent crude oil, Nigerian type of oil, by 2 percent to $45.35 per barrel as at 11:30 am Nigerian time.

UKOilDaily 2However, OPEC newly released projection revealed that crude oil demand will drop than initially projected in 2020. This, coupled with the International Energy Agency revised projection that oil demand will now be 91.1 million barrels per day in 2020, around 8.1 million bpd year-on-year decline, stalled crude oil price movement on Thursday as investors and traders now doubt sustainability given the new predictions.

OPEC released a bearish monthly forecast which indicated that world oil demand will fall more steeply in 2020 than previously forecasted due to the coronavirus and there are doubts about next year’s recovery,” said Avtar Sandu, senior manager commodities at Phillip Futures.

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Nigeria to Become Leading Gold Producer in West Africa – Adegbite

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Adegbite Says Nigeria to Become Gold Hub in West Africa

The Minister of Mines and Steel Development, Olamilekan Adegbite, has said Nigeria is on its way to becoming a leading gold producer in West Africa.

Adegbite made the statement in Abuja while taking stock of his first year in office as minister.

He said, “Indeed, the international roadshows we have had in the past have produced fruits. Today, we have Thor exploration in Osun State through the Segilola Gold project.

“The exploration firm is projected to start producing (gold) in the first half of next year. The project is expected to create about 400 direct jobs and 1,000 indirect jobs.”

According to Adegbite, the Federal Government has licensed two gold refineries that would refine in line with the London Bullion Market Association standard.

He added, “Numerous industries will spring up when our gold economy becomes full-fledged. Some of them will include equipment leasing and repairs, logistics and transport, as gold requires a specialised means of transport, security, insurance, aggregators, and so on.”

The minister noted that for the first time, the country had mined, processed and refined gold under the Presidential Artisanal Gold Mining Development Initiative for use as part of Nigeria’s external reserves.

Adegbite also stated that the mines ministry had initiated a process that would lead to local capacity development in the production of barite.

“Presently, the barite that is used in the oil and gas industry is imported. But we are resolved to reverse this trend. As you may know, barite is a critical weighting material in drilling fluids due to its high specific gravity,” he said.

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NUPENG, Lagos State Agree to Call Off Strike

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NUPENG called off strike

NUPENG Agrees With Lagos State, Call Off Strike

The Nigeria Union of Petroleum and Gas (NUPENG) has ordered Lagos State Petroleum Tanker Drivers (PTDs) to call off its ongoing strike.

This was disclosed in a joint communique signed by the Lagos Commissioner of Energy and Mineral Resources, Olalere Odusote, and the NUPENG Deputy National President, Solomon Kilanko.

It would be recalled that Investors King had reported that NUPENG directed all PTDs to withdraw their services from Lagos State effective from Monday 10 August 2020 because of the persistent extortions and harassments of PTDs by both uniform security agencies and touts.

However, on the 10th of August, the commencement day of the strike, Lagos State government met with the leadership of NUPENG to address the union concerns and eventually agreed on a way forward.

Part of the communique reads “The Lagos State Government met today with the representatives of NUPENG, which agreed to call off its strike immediately.

“Other decisions taken at the meeting are security – the state government will meet the heads of all security agencies and secure their commitment to ensure the free passage of petroleum products vehicles given their importance to the economy.”

“Area boys’ – the menace of ‘area boys’ will be handled by relevant government agencies and a dedicated phone number will be established, within the next week to ensure the petroleum products transporters have prompt access to security agencies.”

The communique also stated that the Lagos State government will set up a standing committee to communicate with the union on an ongoing basis, saying it will help address a similar issue going forward.  See the complete communique below.

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