Akintunde Oyedokun
Research Analyst
Oil prices dropped over 1% on Wednesday after U.S. fuel inventories rose much more than expected. Brent crude closed at $64.86, and WTI at $62.85.
Gasoline stocks jumped by 5.2 million barrels and diesel by 4.2 million, showing weak demand. Crude oil supplies fell, but not enough to offset the rise in fuel stockpiles.
Plans by OPEC+ to increase oil output in July added to worries about too much supply. Trade tensions, slower global growth, and rising geopolitical risks also pressured prices.
India’s Services Sector Grows In May Despite Rising Costs
India’s services sector grew strongly in May, supported by high export demand and record job hiring, a survey showed. The HSBC India Services PMI rose slightly to 58.8, showing steady growth for nearly four years.
Businesses saw strong new orders, especially from overseas, and many increased their staff—the highest hiring rate since 2005. However, this growth came with higher costs for materials, food, and overtime.
Even with rising prices, companies remained confident about the future, thanks to more workers, more customers, and ongoing marketing. Overall, India’s private sector stayed strong, though slightly slower than in April.
U.S. Services Sector Shrinks Amid Trade Uncertainty, Rising Costs
The U.S. services sector shrank in May for the first time in nearly a year, with the ISM PMI dropping to 49.9 amid rising costs and trade uncertainty. Businesses blamed the unpredictable tariff policies under President Trump for hampering planning and investment. While some sectors like healthcare and education grew, key areas such as retail, construction, and transportation contracted. Economists warn of potential stagflation as companies delay spending and withhold financial guidance for 2025.
Ghana’s Inflation Drops To 18.4% In May
Ghana’s inflation fell to 18.4% in May, down from 21.2% in April—its lowest since February 2022. This is the fifth month in a row that prices have dropped.
The government says the fall is due to strong economic policies, a stronger cedi, and better global prices. Both food and non-food prices went down, showing a broad improvement.
Producer inflation also dropped, and the Bank of Ghana kept its interest rate at 28% to help control inflation. The government hopes to reduce inflation to 11.9% by the end of the year.
CBN Survey: Energy Costs Drive Nigeria’s Rising Inflation, Businesses, Households Struggle
The Central Bank of Nigeria (CBN) says 90.8% of businesses blame high energy costs—fuel, diesel, and electricity—for rising inflation. This is a major issue despite the CBN’s tight monetary policies.
Households earning between N30,001 and N100,000 are most affected, with 82.9% feeling the pinch. Both urban and rural areas have similar concerns, with around 80% reporting high inflation. Many expect inflation to rise in June, and both businesses and households predict higher costs.
Most people (68.9%) want the CBN to lower interest rates, but inflation continues to be driven by energy and transport costs. Inflation dropped slightly to 23.71% in April 2025, but challenges remain.
