Akintunde Oyedokun
Research Analyst
Oil prices fell about 4% on Tuesday after Iran and Israel paused hostilities, reducing fears of supply disruptions. Brent crude dropped to $90.85 per barrel, while WTI fell to $87.59.
The decline was also pressured by weak Chinese import data, while investors awaited U.S. crude inventory figures for further market direction.
Canada Trade Surplus Hits 15-Month High
Canada’s trade surplus jumped 55% to C$2.72 billion in April, its highest in 15 months, supported by higher crude oil prices. Exports rose 1.6% to a record C$75.16 billion, led by energy, while imports increased slightly.
Trade with the U.S. strengthened further, with exports rising 4.8% and the surplus widening to C$9.48 billion. Economists expect continued support from strong energy export prices.
German Industrial Output, Exports Rise Modestly In April
Germany’s industrial production rose 0.4% in April, while exports unexpectedly increased 0.9%, offering limited support to the economy.
However, weak factory orders and sluggish manufacturing activity continue to point to a challenging outlook. The trade surplus narrowed slightly to €14.5 billion as imports climbed 1.2%.
Economists expect industrial activity to remain under pressure in the coming months.
Kenya Keeps Rate at 8.75%, Monitors Inflation Risks
Kenya’s central bank maintained its benchmark interest rate at 8.75%, citing the need to monitor the impact of rising global oil prices on inflation.
Inflation climbed to 6.7% in May, driven by higher fuel costs, while the bank lowered its 2026 growth forecast to 4.9% from 5.3%. Policymakers said they remain ready to take further action if needed.
The next Monetary Policy Committee meeting is scheduled for August.
IMF Warns Nigeria On $5bn Financing Plan
The IMF has cautioned Nigeria over its proposed $5 billion financing deal with First Abu Dhabi Bank, warning that derivative-based funding structures can be opaque and risky.
While commending recent economic reforms, the Fund urged the government to consider more transparent borrowing options such as Eurobonds and concessional loans.
