Oil Hits Two-Week High as U.S.-China Tariff Truce Sparks Demand Hopes
Akintunde Oyedokun
Research Analyst
Oil prices rose about 1.5% on Monday, reaching a two-week high, after the U.S. and China agreed to pause tariffs, boosting hopes for a trade resolution and stronger demand. Brent closed at $64.96 and WTI at $61.95, as markets responded positively to the easing tensions between the world’s top two oil consumers.
Additional support came from supply disruptions in Iraq, Norway, and Mexico. However, ongoing talks involving Iran and Russia could increase global supply if sanctions are lifted.
U.S. Posts $258B April Surplus On Tax Boost, Tariffs Surge
The U.S. posted a $258 billion budget surplus in April, up 23% from last year, fueled by strong tax receipts and a $16 billion surge in customs duties—nearly $9 billion more than a year earlier—after tariff hikes on Chinese and other imports.
Though Trump claimed $2 billion in daily tariff revenue, Treasury data shows about $500 million daily. This is expected to drop after a 90-day U.S.-China tariff rollback.
The fiscal 2025 deficit reached $1.049 trillion so far, also up 23%, with record tax receipts and spending.
Japan’s Service-Sector Confidence Declines Amid Growing U.S. Tariff Concerns
Japan’s service-sector sentiment worsened in April, as concerns over the impact of U.S. tariffs weighed heavily on businesses. The diffusion index dropped to 42.6, marking the fourth consecutive monthly decline. The government revised its economic outlook, citing a weakening recovery driven by rising domestic prices and ongoing trade uncertainty. The economic outlook index also fell, signaling growing worries about potential tightening of consumer spending in the months ahead.
Koidu Limited Suspends Operations, Lays Off Over 1,000 Workers Amid Strike and Allegations
Koidu Limited, Sierra Leone’s top diamond producer, has halted operations and dismissed more than 1,000 workers after a long-running dispute over pay and conditions. Workers resumed their strike in March 2025, citing underpaid salaries and poor facilities. The company, which has suffered $16 million in losses, demands $20 million to restart operations. Koidu also accused Sierra Leone’s First Lady, Fatima Bio, of inflaming the situation with her public statements, seeking a retraction and legal guarantees.
Nigeria’s Economy Sees Strong Growth In 2024 Amid Inflation Challenges
Nigeria’s economy grew 4.6% in Q4 2024, its fastest in nearly a decade, driven by reforms under President Tinubu, including the removal of petrol subsidies and devaluation of the naira. The World Bank projects 3.6% growth for 2025, supported by improved fiscal position and a stable foreign exchange rate, with reserves now exceeding $37 billion.
Despite these gains, high inflation remains a challenge. The World Bank urges continued tight monetary and fiscal policies to maintain stability, while the full benefits of subsidy removal have yet to be fully realized.
