Crude oil prices declined on Tuesday, with Brent crude futures settling down by 0.42% to close at $86.24 a barrel while U.S. West Texas Intermediate crude settled at $82.81 a barrel, declining by 0.68%. The decline was sponsored by decrease in fear that the storm’s ( Hurricane Beryl )projected path indicates it will miss most of the oil fields, instead heading towards Jamaica. Hurricane Beryl is a Category 4 storm, moving through the Caribbean Sea. It is projected to diminish to a tropical storm by the end of this week as it enters the Gulf of Mexico.
US Manufacturing Extends Slump, As Inflation Pressures Ebbing
U.S. manufacturing contracted for a third straight month in June as demand remained subdued, while a drop in a measure of prices paid by factories for inputs to a six-month low suggested that inflation could continue to subside. Manufacturing is being pressured by higher interest rates and softening demand for goods, though business investment has largely held up. manufacturing PMI slipped to 48.5 last month from 48.7 in May. A PMI reading above 50 indicates growth in the manufacturing sector, which accounts for 10.3% of the economy. Eight manufacturing industries, including primary metals and chemical products, reported growth. Machinery, transportation equipment, electrical equipment, appliances and components as well as computer and electronic products were among the nine industries that contracted.
Euro Zone Factory Activities Decline Deepens In June, PMI Shows
Manufacturing activity across the euro zone except Italy, took a turn for the worse last month as demand fell at a much faster pace despite factories cutting their prices. Purchasing Managers’ Index (PMI) compiled by S&P Global, fell to 45.8 in June from May’s 47.3, just ahead of a 45.6 preliminary estimate. It has been below the 50 mark separating growth from contraction for two years. An index measuring output, which feeds into a composite PMI due on Wednesday that is seen as a good gauge of economic health, sank from May’s 49.3 to a six-month low of 46.1
World Bank Approves $208m For Zambia’s Drought Response
The World Bank has approved a $208 million grant for Zambia in a bid to address the social and economic impact of drought that has hit the southern African nation. Zambia, Malawi and Zimbabwe have all declared a state of disaster because of the drought, which has hit food production and livelihoods of millions of people. The grant will support at least over 1.6 million households spanning across 84 drought-impacted districts with emergency cash assistance over a 12-month period. However, the International Monetary Fund’s board last month approved a request from the Zambian government to increase its financial support to Zambia to $1.7 billion from $1.3 billion to help the nation respond to the drought.
Nigeria’s Money Supply Near N100tr, Driven By Domestic Asset Growth In May
Nigeria’s money supply has increased by 2% month-on-month from N96.97 trillion the previous month and a year-on-year (Y-o-Y) growth of 78% from N55.69 trillion in the same month of the previous year amid a stringent monetary policy decision. The increase in net domestic assets drove the surge in May 2024. Net domestic assets rose by 23% from N68.25 trillion in April 2024 to N83.9 trillion while Net foreign assets, on the other hand, declined by 47% to N15.34 trillion in May 2024 from N28.73 trillion in the previous month.
