By Akintunde Oyedokun
Research Analyst
Oil prices edged higher Wednesday as short-covering provided support after OPEC cut its demand forecast, though a strong dollar capped gains. Brent crude rose 39 cents to $72.28, while U.S. WTI increased 31 cents to $68.43. OPEC’s forecast revision reflects weaker demand in China and India, and the U.S. EIA projects record-high production this year. A phone call between Russia and Saudi Arabia reaffirmed OPEC+ coordination, while potential disruptions from Iran remain a concern.
Japan’s Oct Wholesale Inflation Surges Amid Yen Weakness, Adding Pressure on BOJ Rate Decision
Japan’s wholesale inflation climbed 3.4% year-on-year in October, marking its fastest rise since August 2023 and outpacing market expectations. The increase was driven by a weak yen and higher import costs for items like rice, nonferrous metals, food, and oil, indicating that companies remain under pressure from elevated raw material costs. This inflation surge complicates the Bank of Japan’s rate hike decisions, as BOJ Governor Kazuo Ueda weighs whether further rate adjustments are warranted if inflation shifts toward domestic demand and wage growth. However, most economists still expect the BOJ to hold off on additional rate hikes this year.
Rising Incomes Help Americans Manage Growing Debt in Q3
Americans’ rising incomes helped manage expanding debt in Q3, despite signs of financial strain, according to the New York Federal Reserve. Household debt rose 0.8% to $17.94 trillion, up $3.8 trillion since 2019. Delinquency rates increased to 3.5% of debt, with auto and mortgage delinquencies rising. However, the debt-to-income ratio dropped to 82%, down from 86% in 2019, indicating manageable debt levels. The Fed noted that housing-related borrowing and recent interest rate cuts could ease future borrowing stress.
Ivory Coast Unveils $500m Green Fund To Combat Climate Impact, Foster Growth
Ivory Coast will create a $500 million green finance fund, with support from the IMF, to drive sustainable development and climate resilience. Part of the African Green Banks Initiative, this fund joins efforts to establish a $1.5 billion green investment network across Africa by 2030. Despite Africa’s low emissions, the continent faces severe climate challenges, receiving only 1% of global climate finance. Ivory Coast’s new fund will draw from public and private sources to support environmental reforms, including initiatives like carbon credit management.
Floods and Crisis Push Borno Residents into Hunger and Displacement
Northeastern Nigeria is in crisis as violence, soaring food prices, and September floods devastate Borno State. After a dam collapse, many lost homes and crops, forcing them into camps or risky farm work to survive.
Floods across Nigeria have affected nine million people and destroyed farmland, with food prices doubling or tripling. An estimated 25 million Nigerians are facing severe food insecurity, expected to rise to 33 million by mid-next year.
