Akintunde Oyedokun
Research Analyst
Oil prices rose slightly on Friday but posted weekly losses as fears of oversupply and U.S.-China trade tensions weighed on the market. Brent crude settled at $66.87 a barrel, down 1.6% for the week, while U.S. WTI closed at $63.02, falling 2.6%. Traders expect limited short-term gains with speculation that OPEC+ may boost output and as U.S. drilling activity picks up.
Earlier this month, oil prices had hit four-year lows due to trade-driven demand fears. Hopes for a resolution to the Ukraine war could also increase supply by allowing more Russian oil into the market.
U.S. Consumer Sentiment Falls Again In April On Trade, Inflation Worries
U.S. consumer sentiment weakened for a fourth month in April, pressured by trade tensions and inflation concerns. The University of Michigan’s Sentiment Index edged up to 52.2 but stayed well below March’s 57.0.
Survey Director Joanne Hsu highlighted growing worries over job prospects, income growth, and persistent inflation risks. Short-term inflation expectations dipped to 6.5% but remained near historic highs, while long-term expectations climbed to 4.4%, particularly among Independents.
BoE’s Greene: Tariffs Likely To Lower UK Inflation Amid Economic Uncertainties
Bank of England’s Megan Greene said U.S. tariffs could push UK inflation lower, not higher, though uncertainty remains. Speaking at an IMF event, she noted risks have shifted toward disinflation, with productivity weakness and rising labour costs adding pressure.
UK firms face higher costs after tax hikes and a near 7% minimum wage rise. Greene said slower growth and easing wages should help inflation return to the BoE’s 2% target. Markets expect a quarter-point rate cut to 4.25% at the BoE’s May 8 meeting.
Zimbabwe’s New ZiG Currency Struggles Amid Surging Inflation
Zimbabwe’s annual inflation rate rose to 85.7% in April, according to newly released data — the first local currency figure since the introduction of the Zimbabwe Gold (ZiG) currency. The ZiG, launched in April 2024 as Zimbabwe’s sixth attempt at currency stability in two decades, was meant to anchor the economy after years of hyperinflation.
However, the new currency has already lost nearly 50% of its value, based on Friday’s exchange rates from the central bank, raising fresh concerns over its long-term viability.
Nigeria’s Oil Exports Face Setback As Global Demand Weakens
Nigeria’s economy is under pressure as over half of its planned oil exports for April and May 2025 remain unsold, affecting key blends like Bonny Light and Forcados. Indonesia, a major buyer, is shifting to U.S. oil to avoid new tariffs, threatening Nigeria’s sales.
Oil prices rose slightly this week but are still expected to end lower due to oversupply and weak demand. Rising tensions over global trade, OPEC+ concerns, and possible peace talks in Ukraine could further impact the oil market.
