Akintunde Oyedokun
Research Analyst
Oil prices rose on Monday after the U.S. imposed new sanctions on Iran’s oil sector and Iraq reaffirmed its commitment to OPEC+ production limits. Brent crude gained 0.5% to $74.78 per barrel, while WTI increased 0.4% to $70.70.
Despite the sanctions, analysts remain cautious about their impact on Iranian exports. Iraq also pledged to compensate for recent overproduction and resume Kurdish oil exports.
However, talks to end the Ukraine war and potential U.S. tariffs could create headwinds for crude demand.
Thailand Considers Rate Cut To Support Growth, Exports
Thailand’s low inflation creates room for an interest rate cut to stimulate economic growth and weaken the baht to support exports, Finance Minister Pichai Chunhavajira said. With inflation at 1.32% in January—well below the central bank’s 1-3% target—he sees rate cuts as a tool to sustain economic momentum. While most economists expect the Bank of Thailand to keep rates at 2.25% this week, Pichai urged more lending flexibility and measures to tackle household debt. He emphasized the importance of a weaker baht for Thailand’s export-driven economy.
Japan’s Bond Yields Surge As BOJ Resists Heavy Intervention
Japan’s government bond market is experiencing rising yields, with the Bank of Japan (BOJ) maintaining a hands-off stance. Despite recent increases, BOJ Governor Kazuo Ueda reiterated that the bank is committed to letting market forces set long-term rates, only considering bond purchases in extreme cases. The yield on the 10-year Japanese government bond recently hit a 15-year high, driven by expectations of higher rates. Analysts predict further rises, with some forecasting yields to reach 1.5% by March. The BOJ’s cautious approach contrasts with its previous heavy interventions under former Governor Kuroda, focusing instead on gradually reducing its massive bond holdings.
Uganda’s Coffee Exports Soar 83.4% In January, Driven by High Global Prices
Uganda’s coffee exports saw a remarkable 83.4% increase in value in January compared to the same month last year, reaching $156.5 million. The country shipped 550,341 60-kilogram bags of coffee, marking a 14.4% rise in quantity from the previous year. This surge in export value was driven by high global coffee prices, which have been impacted by dry weather conditions in Brazil and Vietnam. As Africa’s largest coffee exporter, Uganda’s strong performance continues to highlight its key role in the global coffee market, followed by Ethiopia.
Olam Agri Discusses Strategic Investments To Boost Nigeria’s Agricultural Sector
Olam Agri has held talks with the Federal Government to explore investments aimed at enhancing Nigeria’s agriculture. The discussions, led by Olam Agri’s MD Anil Nair and Finance Minister Wale Edun, focused on expanding fertilizer production, irrigation support, and local processing facilities to improve agricultural productivity and reduce food prices. These initiatives align with Nigeria’s goal of self-sufficiency and reducing food import reliance. The government also committed to creating a conducive business environment for agribusinesses to thrive. Olam Agri’s investments are expected to foster job creation and strengthen Nigeria’s agribusiness value chain.
