Akintunde Oyedokun
Research Analyst
Oil prices stayed nearly unchanged on Tuesday, with Brent at $65.38 and WTI at $62.56. Uncertainty over U.S.-Iran nuclear talks and new sanctions on Russia added pressure. Iran rejected U.S. demands, making a deal that could boost its oil exports less likely.
Meanwhile, weak economic data from China raised worries about lower oil demand. Slower factory activity and retail sales showed signs of a slowdown. However, a pause in U.S.-China tariffs and hopes for U.S. interest rate cuts gave the market some support.
China Cuts Lending, Deposit Rates To Boost Economy
China has lowered its main lending and deposit rates to support the slowing economy and encourage more borrowing and spending. The one-year loan rate is now 3.0%, and the five-year rate is 3.5%—both at their lowest since 2019. Big state banks also cut deposit rates by 5–25 points. The move aims to help banks stay profitable while stimulating growth, but experts say the cuts are small and show China is being cautious as it manages its trade tensions with the U.S. and weak economic data.
Canada’s Inflation Falls to 1.7%, But Core Prices Rise
Canada’s inflation rate dropped to 1.7% in April, mainly due to lower energy prices and the removal of a federal carbon tax. However, core inflation measures, which exclude volatile items, increased, complicating the Bank of Canada’s next rate decision. The CPI median rose to 3.2%, and the CPI trim reached 3.1%, both the highest since March 2024.
While overall inflation slowed, analysts now see a reduced chance of a rate cut in June, down to 40% from 65%. The Bank is balancing mixed economic signals, with weakening growth on one side and persistent inflation pressures on the other. The next key data release is Canada’s GDP report on May 30.
17 Injured In Fire At Chevron’s BBLT Oil Platform Off Angola
Seventeen people were injured, four seriously, in a fire early Tuesday on Chevron’s Benguela Belize Lobito Tomboco (BBLT) oil platform, offshore Angola. The fire, which broke out in the basement deck of the multi-storey platform, is under investigation. All injured workers have been evacuated and are receiving medical care. The incident occurred during scheduled maintenance, and production had been halted since May 1. Chevron confirmed that all personnel on the platform have been accounted for.
CBN Maintains Interest Rate At 27.5% To Curb Inflation, Support Economic Stability
Nigeria’s central bank left its benchmark interest rate unchanged at 27.5% for the second time in a row, pointing to improvements in macroeconomic conditions that could ease inflation in the medium term. The decision follows multiple rate hikes last year aimed at taming inflation after subsidy removal and currency devaluation.
Although headline inflation eased significantly from 34.8% in December to 24.5% in January after a rebasing exercise, the Central Bank remains concerned about persistent inflation pressures, driven by high electricity costs and foreign exchange volatility. The Monetary Policy Committee acknowledged recent government efforts to boost local production and reduce reliance on imports. However, concerns remain over declining oil prices and global trade uncertainties that could affect national revenue and spending plans.
