Akintunde Oyedokun
Research Analyst
Oil prices climbed Wednesday as U.S. crude inventories fell by 3.3 million barrels, surpassing expectations, while concerns grew over potential supply disruptions due to U.S. tariff threats on Venezuelan oil exports.
Brent crude settled at $73.79 per barrel (+1.05%), and WTI reached $69.65 (+0.94%). The market reacted to tighter supply conditions as Washington’s sanctions and trade policies continued to reshape global crude flows.
UK Inflation Drops to 2.8% in February, But Energy Costs Loom
Inflation in the UK fell to 2.8% in February from 3.0% in January, slightly below economists’ forecasts. The drop, driven by lower clothing and footwear prices, provided brief relief before an expected rise due to energy costs and tax changes.
Markets reacted with a decline in sterling and bond yields, while analysts warned inflation could near 4% soon. The Bank of England remains cautious, weighing upcoming price pressures before deciding on future interest rate cuts.
Australia’s Inflation Slows, Boosting Rate Cut Prospects
Australia’s inflation slowed in February, aided by falling electricity prices and easing housing costs, reinforcing expectations of rate cuts. Consumer prices remained flat month-on-month, with annual inflation easing to 2.4%. Core inflation also edged lower to 2.7%.
The Reserve Bank of Australia remains cautious, watching inflation trends closely. Markets anticipate a rate cut in May, pending first-quarter inflation data.
Egypt Approves $91 Billion Budget to Cut Debt and Boost Reforms
Egypt has approved a 4.6 trillion pound ($91 billion) budget for 2025/26, aiming to reduce debt and support IMF-backed reforms. Spending will rise by 18%, revenue by 19%, with a $30 billion deficit.
Public debt is expected to fall to 82.9% of GDP, while inflation has dropped to 12.8% from 38% last year. The budget increases subsidies for food, fuel, and electricity, totaling 732.6 billion pounds.
The IMF approved a $1.2 billion disbursement, praising Egypt’s progress despite a missed fiscal target.
FG Unveils N1 Trillion Housing Fund for Affordable Mortgages
The Federal Government is launching a N1 trillion ($654 million) housing fund to provide low-interest mortgages and reduce Nigeria’s 28 million housing deficit, says Finance Minister Wale Edun.
The first phase includes a 40-year, 1% interest loan from the World Bank’s IDA and N250 billion from local investors. The initiative aims to boost home ownership and drive a construction boom.
The government is also set to build 40 major roads (5,000 km) with private investment, while the MREIF fund successfully raised N250 billion, signaling strong investor confidence.
