By Akintunde Oyedokun
Research Analyst
Oil prices fell more than $2 per barrel on Thursday, erasing the previous day’s gains as market focus shifted from a temporary U.S. tariff pause to escalating trade tensions with China. West Texas Intermediate slid 3.7% to $60.07, while Brent dropped 3.3% to $63.33. Crude exports to China dropped sharply, and U.S. stockpiles rose by 2.6 million barrels. The Energy Information Administration cut its global demand outlook, warning tariffs and recession fears could weigh on prices further.
U.S. Inflation Eases In March, But Tariff Fallout Threatens Stability
U.S. consumer prices fell 0.1% in March, the first decline since 2020, due to lower gas and used car costs. However, Trump’s escalating tariffs on Chinese goods may push inflation higher in coming months.
Weaker demand and recession fears led markets to expect Fed rate cuts. Travel and lodging prices also dropped, signaling reduced consumer spending. While food prices rose overall, produce and bakery items fell. Economists warn the full impact of tariffs is yet to come.
China Faces Growing Deflation Risks Amid Mounting Trade War Pressures
China’s consumer prices fell for the second consecutive month in March, with the CPI down 0.1% year-on-year and 0.4% month-on-month, missing expectations. Producer prices also declined 2.5%, driven by lower oil prices and reduced energy demand. Despite modest gains in retail sales and factory output, rising unemployment and deflation are weighing on the economy. The ongoing U.S.-China trade war has amplified concerns over unsold exports and further price drops.
Egypt Inflation Rises To 13.6% In March, Beats Forecasts
Egypt’s annual urban inflation rose to 13.6% in March, up from 12.8% in February and above the 12.6% forecast. Food prices drove the increase, rising 3.5% monthly and 6.6% annually.
The previous drop in February was due to base effects. Inflation had surged after the 2022 Ukraine war, peaking at 38% in September 2023. Money supply growth hit 33.9% in February.
Egypt responded last year with a currency devaluation, interest rate hike, and an $8B IMF deal.
Dangote Refinery Cuts Petrol Price To N865/l As FG Reaffirms Naira-For-Crude Policy
Dangote Refinery has reduced its ex-depot petrol price from N880 to N865 per litre. The price cut follows the Federal Government’s confirmation of the Naira-for-Crude policy with local refiners.
The reduction, announced Thursday, will be reflected by partners like MRS Oil and Ardova at retail outlets. The FG reaffirmed the Naira-for-Crude initiative as a long-term strategy to reduce forex dependency and ensure energy security.
