Akintunde Oyedokun
Research Analyst
Oil prices edged higher on Friday but broke a four-week winning streak, closing the week with losses after U.S. President Donald Trump urged higher domestic production and called on OPEC to lower prices.
Brent crude increased by 21 cents to $78.50 per barrel, while WTI rose 4 cents to $74.66. However, both benchmarks recorded weekly declines of 2.8% and 4.1%, respectively. Analysts highlighted potential challenges to Trump’s efforts to reduce prices, including U.S. sanctions on Russia and Iran and OPEC’s consistent output levels.
Meanwhile, Chevron’s $48 billion oilfield expansion and relaxed U.S. regulations could enhance supply but risk oversaturation, while tariffs on key trade partners have raised concerns about softer demand.
BOJ Raises Interest Rates To 17-Year High, Signals More Hikes Ahead
The Bank of Japan raised its interest rate to 0.5%, its highest since 2008, and revised inflation forecasts, citing rising wages. This marks its first hike since July last year and signals confidence in sustained inflation around the 2% target. Governor Kazuo Ueda emphasized the potential for further hikes as wage and price increases spread, though future rate decisions will depend on inflation trends. Despite global uncertainties, including U.S. policy and trade risks, the BOJ remains committed to gradually raising rates if its economic outlook holds.
U.S. Consumer Sentiment Drops In January On Inflation, Job Market Fears
U.S. consumer sentiment weakened in January, reflecting growing concerns about unemployment and higher prices if tariffs are imposed under President Trump’s administration.
The University of Michigan’s Consumer Sentiment Index fell to 71.1 from December’s 74.0, marking a broad decline across income and age groups.
“Despite stronger incomes, nearly half of consumers expect unemployment to rise, the highest since the pandemic,” said Joanne Hsu, director of the survey.
Inflation expectations for the next year remained at 3.3%, up from 2.8% in December, while long-term inflation expectations edged slightly down to 3.2%.
Morocco To Build 990mw Gas-Fired Power Plant With $420m Investment
Morocco’s utility, ONEE, plans to construct a 990 MW gas-fired power plant at a cost of $420 million. The project will be funded 20% by ONEE and 80% through loans from Attijariwafa Bank, Bank of Africa, and two securitization funds, FT Nord Energy and FT Flexenergy. The plant, located in northern Morocco, will utilize diesel as an emergency fuel. It is part of Morocco’s strategy to diversify its energy mix, aiming for 52% renewable energy by 2030. The country’s current energy capacity is 11,918 MW, mainly from coal.
Food Prices In Nigeria Surge By 91.6% In December 2024
Food prices in Nigeria increased from N2,862.14 in November to N2,920.13 in December 2024, reflecting a 91.6% rise compared to December 2023, according to the NBS. The South-East had the highest average price at N3,484.48, while the North-West had the lowest at N2,526.72. Prices of key food items like beans, onions, and palm oil saw sharp increases. Experts link the price surge to factors like regional insecurity, supply chain issues, and rising production costs, with projections indicating a growing food insecurity crisis in 2025.