Akintunde Oyedokun
Research Analyst
Oil prices declined on Thursday after President Trump reiterated plans to boost U.S. production, unsettling traders following a sharp rise in crude stockpiles. Brent crude fell 0.4% to $74.29 per barrel, while WTI crude dropped 0.6% to $70.61. U.S. crude inventories surged by 8.7 million barrels, far exceeding expectations, adding further pressure on prices.
Earlier gains driven by Saudi Arabia’s price hike for Asian buyers and new U.S. sanctions on Iranian oil shipments were erased. following Trump’s comments. Analysts remain skeptical about increased U.S. drilling, with market volatility expected to continue amid shifting trade and energy policies.
BoE Cuts Rates to 4.5%, Warns of Inflation and Slower Growth
The Bank of England lowered interest rates from 4.75% to 4.5% but signaled a cautious approach to further cuts amid rising inflation and economic uncertainty. Some policymakers pushed for a deeper reduction to 4.25%, reflecting concerns over slowing growth. Inflation is now expected to peak at 3.7% this year, nearly double the central bank’s target, while the 2025 growth forecast has been halved to 0.75%. Despite the rate cut, financial markets remain uncertain, with investors expecting two or three more reductions by the end of the year.
U.S. Jobless Claims Edge Up Amid Slowing Hiring
New unemployment claims rose by 11,000 to 219,000 last week, indicating a gradual labor market slowdown. While layoffs remain low, job openings per unemployed person declined to 1.1 in December. The Federal Reserve kept interest rates steady, assessing the impact of economic policies. Hiring remains weak, with U.S. employers announcing 6,089 new jobs in January, down 24% from December.
Business sentiment improved after Trump’s election, but hiring plans remain lackluster due to restrictive monetary policies and higher prices from tariffs. January’s job report, due Friday, is expected to reflect the impact of extreme weather and California wildfires on employment.
Egypt’s Inflation Expected To Fall To 23.0% In January
Egypt’s inflation rate is forecast to ease to 23.0% in January from 24.1% in December, supported by a base effect, according to a Reuters poll. Analysts attribute the decline to stable food and pharmaceutical prices, even as building material prices fluctuate. Core inflation is also expected to decrease to 21.8%. This marks a continued slowdown after a peak of 38% in September 2023. The drop follows months of rising inflation earlier in 2023, with rapid growth in the money supply contributing to price increases. Official inflation data will be released by the government on Monday.
Dangote Refinery Exports Jet Fuel To Saudi Aramco, Hits 550,000 BPD Capacity
Dangote Petroleum Refinery recently exported two jet fuel cargoes to Saudi Aramco, highlighting the refinery’s growing global presence. Aliko Dangote, president of Dangote Group, announced the achievement during a visit by the Nigerian Economic Summit Group (NESG) to the refinery in Lagos. The refinery, which began operations in 2024, now produces 550,000 barrels per day (bpd) and aims to reach 650,000 bpd by mid-2025.
NESG Chairman, Niyi Yusuf, commended Dangote’s $20 billion refinery, calling for more investments to reach Nigeria’s $1 trillion economy goal. Yusuf also urged the government to support local industries, citing Dangote’s success in making Nigeria a net exporter of petroleum products.
Dangote emphasized the importance of the private sector in driving national development and self-sufficiency, advocating for protection of domestic industries against unchecked imports.
