Akintunde Oyedokun
Research Analyst
Oil prices remained steady on Wednesday, supported by strong U.S. gasoline demand, renewed Red Sea shipping attacks, and expectations of lower U.S. oil output in 2025. Brent settled at $70.19 and WTI at $68.38 per barrel. U.S. gasoline demand rose 6% last week, while crude inventories unexpectedly increased by 7.1 million barrels. The market also reacted to Trump’s plan for a 50% copper tariff and the upcoming OPEC+ production boost of 548,000 bpd for August. Despite rising supply, analysts say the market remains tight, showing strong demand resilience.
RBNZ Holds Rate at 3.25%, May Cut In August If Inflation Slows
New Zealand’s central bank kept interest rates steady at 3.25% on Wednesday, warning of short-term inflation risks but saying it may cut rates in August if prices keep falling. The bank has already cut rates by 225 basis points since August 2024.
Inflation is now at 2.5%, within the target range of 1–3%. The economy is recovering slowly, and global trade tensions are adding pressure. The New Zealand dollar fell slightly as markets expect another rate cut next month.
China Eyes Over ¥140tr GDP In 2024 As Five-Year Plan Nears End
China’s economy is projected to exceed ¥140 trillion ($19.5 trillion) in 2024, according to the National Development and Reform Commission. Despite headwinds like U.S. trade tensions and deflation, the country averaged 5.4% annual growth from 2021 to 2024. The current five-year plan, ending in 2025, has focused on innovation, green growth, and industrial strength. Policymakers are now gathering input for the next plan, with rising calls to boost household spending amid external challenges.
Egypt’s Core Inflation Eases to 11.4% In June Amid Gradual Price Stability
Egypt’s core inflation rate experienced a notable decline in June, falling to 11.4% year-on-year from 13.1% recorded in May, according to a statement released by the Central Bank of Egypt on Wednesday. This easing of inflation reflects a continued moderation in underlying price pressures, suggesting gradual progress in the country’s efforts to stabilize its economic environment and curb the impact of previous inflationary surges.
Nigerian Crude Rises On Decision By Dangote Refinery To Use Only Local Supplies
Nigerian crude oil reached $72.3 per barrel, slightly above global prices, after Red Sea attacks disrupted shipping. But oil prices dropped on Wednesday due to a surprise rise in U.S. crude stockpiles.
Dangote Refinery plans to stop importing crude by December 2025 and switch fully to Nigerian supply. In June, it used 53% local oil and now processes 550,000 barrels daily. It also reduced petrol prices to N820 per liter and is working with more marketers.
Meanwhile, Petralon Energy is increasing local oil output by 2,500 barrels per day through drilling at the Dawes Island field.
