Akintunde Oyedokun
Research Analyst
Oil prices hit a two-month low as rising U.S. fuel stockpiles pointed to weakening demand, while hopes for a Russia-Ukraine peace deal eased supply fears.
Brent crude fell 0.67% to $72.53 per barrel, and WTI declined 0.45% to $68.62. Despite a drop in crude stockpiles, unexpected increases in gasoline and distillate inventories pressured prices.
Analysts suggest potential sanctions relief on Russia and shifting U.S. energy policies, including expanded Iraqi oil exports and changes in Venezuela’s production, could further impact the market.
U.S New Home Sales Drop Sharply Amid High Mortgage Rates, Harsh Winter
New U.S. single-family home sales fell 10.5% in January, exceeding expectations, as high mortgage rates and severe winter storms dampened demand. The Commerce Department’s report signals a sluggish start to economic activity in Q1, with retail sales also declining. Despite rising inventory, median home prices hit a two-year high at $446,300. Affordability remains a challenge, with mortgage rates hovering around 6.85%. The Federal Reserve’s policy stance and inflation concerns add uncertainty to the spring housing market outlook.
Taiwan Faces Slower Growth In 2025 Amid U.S Tariff Risks, Budget Cuts
Taiwan’s economy is projected to slow in 2025 due to potential U.S. tariffs on chips and domestic budget cuts. The U.S., Taiwan’s second-largest export market, has proposed a 25% tariff, prompting diplomatic efforts from Taipei. The government now forecasts 3.14% GDP growth, down from an earlier 3.29% estimate and significantly lower than 2024’s 4.59%. While exports are expected to rise 7.08%, budget reductions could limit government spending and investment. Inflation is forecast at 1.94%, and the fourth-quarter GDP growth was revised up to 2.9%. Economic uncertainties and trade pressures remain key risks.
South Africa’s January Inflation Rises Slightly, Stays Near Target Range
South Africa’s inflation edged up to 3.2% in January from 3.0% in December, below economists’ 3.3% forecast but still within the central bank’s 3%-6% target. Core inflation, excluding food and energy, remained steady at 3.5%. Despite three consecutive interest rate cuts, analysts expect the central bank to pause easing amid global economic uncertainties. The updated consumer price basket now includes items like rose wine, air fryers, and streaming services. Key inflation drivers were housing, food, and accommodation.
Nigeria Seeks Life Sentences, Death Penalty For Fake Drug Trade
Nigeria’s drug enforcement agency has called for life sentences and the death penalty for those caught trading counterfeit and illegal medicines, as it conducts its largest nationwide crackdown. The operation, supported by security agencies, seized large quantities of counterfeit drugs, including improperly stored vaccines, expired condoms, and banned opioids like Tafrodol. NAFDAC head Mojisola Adeyeye urged lawmakers to amend drug laws to enforce harsher penalties. The operation, targeting Lagos and other southwestern states, is the largest of its kind, aiming to tackle widespread counterfeit drug sales in informal markets.
