Akintunde Oyedokun
Research Analyst
Oil prices rose more than 1% on Tuesday as a winter storm disrupted U.S. crude production, cutting up to 2 million barrels per day. Brent climbed to $66.49 a barrel, while WTI reached $61.50.
Supply concerns were reinforced by a slow restart at Kazakhstan’s Tengiz oilfield, ongoing Middle East tensions, and expectations that OPEC+ will maintain current output levels, keeping the near-term oil market tight.
Japan’s Services Prices Rise, BOJ Eyes Further Rate Hikes
Japan’s services producer prices rose 2.6% in December, driven by labour shortages and wage gains. The increase reinforces the Bank of Japan’s view that inflation will stay elevated, supporting potential interest rate hikes. While some BOJ officials see underlying inflation already at the 2% target, others say it is approaching it. Analysts expect the next rate hike around July, though markets price in a high chance of an earlier move by April.
BoE to Hold Rates at 3.75% in February
The Bank of England is expected to keep its interest rate at 3.75% in February, supported by stronger-than-expected economic growth, retail sales, and inflation. Economists remain divided on future moves: about half expect a March cut to 3.50%, while the rest see rates holding through Q1. Longer-term forecasts suggest a potential decline to 3.25% by Q3. The BoE is likely to take a cautious approach, waiting for more data before making further policy changes.
South Africa Coal Exports Reach Four-Year High on Rail Recovery
South Africa’s coal exports rose 11% to 57.66 million tons in 2025, the highest in four years, supported by improved rail performance. Exports remain below 2017 levels due to Transnet’s capacity limits and infrastructure issues. Asia, led by India, remains the main market, while shipments to Europe and the Middle East grew. RBCT handled more trains daily, signaling a gradual recovery in coal logistics. The boost in exports comes as South African miners benefit from stronger global coal demand.
Nigeria Hit by Second National Grid Collapse in One Week
Nigeria’s electricity grid collapsed again on Tuesday, triggering a nationwide blackout and marking the second system failure within one week. Power generation dropped to zero megawatts around 11:00 am, cutting supply to all major distribution companies.
The incident has heightened concerns about the reliability of the country’s power infrastructure. Although the cause is yet to be officially disclosed, limited power has started returning in some areas, pointing to a slow and fragile recovery.
