Oil Prices Steady As Middle East Attacks Raise Supply Concerns

Akintunde Oyedokun

Research Analyst

Oil prices held firm on Wednesday as attacks on Saudi Aramco facilities and shipping vessels near the Strait of Hormuz heightened concerns over supply disruptions. Brent crude rose 13 cents to $105.56 per barrel, while US West Texas Intermediate gained 1.33% to $95.39, its highest level in more than two weeks.

US Inflation Hits 3.7% as Fuel Costs Surge

US inflation rose to 3.7% in September from 3.4% in August, driven by a 9.1% jump in gasoline prices. The increase heightened concerns over living costs and pushed market expectations of a Federal Reserve rate hike in October to 37%, although most economists expect rates to remain unchanged.

Spain’s Inflation Rises to 5% in September

Spain’s inflation climbed to 5% in September, its highest since February 2023, driven by rising fuel and air travel costs. Core inflation increased to 3.1% from 2.9% in August, while national inflation rose to 4.9% from 4.3%. Inflation remains well above the European Central Bank’s 2% target.

Kenya Raises Fuel Prices Amid Middle East Conflict

Kenya raised petrol prices by 6% and diesel by 4.5% from October 15 due to higher import costs linked to the Middle East conflict. The government extended an 8% VAT rate on fuel until January 14 to ease the impact on consumers. The increase could push up transportation and production costs across the economy.

IMF Urges Nigeria To Avoid Petrol Subsidy Return

The IMF has advised Nigeria against restoring blanket petrol subsidies, urging targeted support for vulnerable households. It said universal subsidies would strain public finances, recommending transport assistance instead. The Federal Government has introduced a 30-day petrol discount at NNPC outlets to ease the burden on consumers.