The year is off to a bumpy start as oil prices head to new lows with key producers showing no signs of cutting output in the face of a global supply glut. Brent hit its lowest level since 2009 this week and is down more than 50% from June, trading at $50.88 per barrel.
The fall in oil prices has delivered a late Christmas bonus for consumers as the price of 93-octane unleaded petrol dropped to its lowest level since August 2012, providing much needed relief to consumers facing a lean January. South Africa is one of the largest beneficiaries of lower oil prices as a $40 oil price could add as much as 1% to South Africa’s GDP, according to data from Oxford Economics.
Labour market conditions continue to improve in the US as jobless claims and layoffs reach a 17-year low. The backdrop of a strengthening job market could bring the Federal Reserve a step closer to raising its short-term interest rate, which it has kept near zero since December 2008.
Read more in the document below:
- View South Africa annual reports