Akintunde Oyedokun

Research Analyst

Oil prices fell Wednesday as U.S. crude and gasoline inventories rose more than expected. Brent crude settled at $72.81, while WTI futures closed at $68.75.

Weak demand from China and increased supply from Norway weighed on prices, but geopolitical tensions, including the Russia-Ukraine conflict, helped limit losses.

UK Inflation Surges To 2.3%, Exceeding Forecasts and BoE Target

UK inflation rose to 2.3% in October, driven by higher energy tariffs, marking a six-month high and surpassing the Bank of England’s (BoE) 2% target. Core inflation also increased to 3.3%, contrary to market expectations of a decline. The spike, the largest monthly jump since October 2022, prompted cautious adjustments in rate cut expectations and pressured bond prices. Analysts warn the rise signals continued challenges for households and policymakers.

Japan’s Exports Rebound in October Amid U.S. Trade Policy Concerns

Japan’s exports rose 3.1% in October, driven by increased demand for chipmaking equipment in China, reversing September’s 1.7% decline. However, exports to the U.S. fell 6.2% due to weak auto shipments. Economists warn of lingering global demand weakness and potential disruptions from U.S. protectionist policies, including proposed tariffs that could harm Japan’s GDP and international trade stability. The trade deficit widened to 461.2 billion yen, exceeding forecasts.

S’Africa’s Inflation Hits Lowest Level Since 2020, Boosting Rate Cut Hopes

South Africa’s inflation dropped to 2.8% in October, its lowest since June 2020, driven by falling fuel prices and slowing food costs, according to Statistics South Africa. This marks a sharp decline from September’s 3.8% and remains below the South African Reserve Bank’s 4.5% target. Economists widely predict the central bank will cut its repo rate on Thursday, with most expecting a 25 basis points reduction.

Nigeria Seeks Term Buyers for Utapate Crude, Plans Output Growth

Nigeria is looking for term buyers for its new Utapate crude grade, aiming to increase production from 40,000 to 80,000 barrels per day by 2025. The country plans to raise total output to 2 million bpd by the end of this year. NNPC is targeting refineries in Europe and the U.S. East Coast, with five Utapate cargoes already loaded since July. The grade, with an API gravity of 44 and low sulfur content, will compete with other Nigerian and international crude grades.