Akintunde Oyedokun
Research Analyst
Oil prices edged higher on Tuesday, supported by a weaker dollar, but gains were limited by fears of a U.S. economic slowdown and new tariffs. Brent crude settled at $69.56 per barrel, while WTI crude reached $66.25. A sharp decline in U.S. stocks added to market volatility, as President Trump announced a 50% tariff on Canadian steel and aluminum. Meanwhile, U.S. crude production is expected to hit a record 13.61 million bpd this year. Investors now await U.S. inflation data and OPEC+ output plans for further market direction.
U.S. Small-Business Confidence Drops Amid Trade Uncertainty
U.S. small-business confidence declined for the third straight month in February as trade policy concerns grew. The NFIB Optimism Index fell 2.1 points to 100.7, reflecting broader economic uncertainty. Rising tariffs and inflation fears led more businesses to raise prices, with 32% reporting increases—the highest since April 2021.
The share of owners expecting economic improvement dropped 10 points to 37%, while those seeing it as a good time to expand fell to 12%, the lowest since April 2020.
Japan’s Household Spending Rises 0.8% in January, Missing Forecasts
Japan’s household spending grew by 0.8% in January compared to the previous year, according to data from the internal affairs ministry released on Tuesday. This was significantly lower than the market’s median forecast of a 3.6% increase, reflecting weaker consumer demand.
On a seasonally adjusted month-on-month basis, spending dropped by 4.5%, a steeper decline than the estimated 1.9% fall.
Ghana Cuts Spending To Tackle Economic Crisis
Ghana’s government will implement major spending cuts to address its economic crisis, Finance Minister Cassiel Ato Forson announced. Facing high debt, deficits, and challenges in the cocoa and energy sectors, the country aims for 4% GDP growth and 11.9% inflation by year-end. The government plans to scrap consumer levies and introduce targeted revenue measures to stabilize finances.
As part of its IMF bailout conditions, Ghana must restructure its debt and repay $8.7 billion over the next four years, with significant obligations in the energy and cocoa industries.
NNPCL Parleys Dangote Refinery To Extend Naira-Based Crude Oil Supply Contract
NNPC Ltd has begun discussions with Dangote Oil Refinery to extend their crude oil supply contract in naira. The original six-month agreement, set to end this month, was introduced in October to address supply challenges faced by local refineries, including Dangote. NNPC Ltd has supplied 48 million barrels to Dangote under this deal, which initially aimed to assist seven refineries but only benefited Dangote. Details of the potential new contract, including volume, pricing, and duration, remain undisclosed.
