Akintunde Oyedokun
Research Analyst
Oil prices fell on Thursday as reports emerged that OPEC+ may increase production by 411,000 barrels per day in July, raising concerns that supply could exceed demand. Brent crude dropped 47 cents to $64.44, while WTI fell 37 cents to $61.20. The potential move, discussed ahead of the June 1 meeting, reflects a shift toward boosting market share over defending prices. Additional pressure came from an unexpected U.S. inventory build and weaker fuel demand, while Kazakhstan’s rising output and Chevron’s expiring Venezuela license added to market volatility.
U.S. Economic Activity Grows in May, But Tariff Worries Persist
U.S. business activity improved in May, boosted by a temporary reduction in tariffs on Chinese imports. S&P Global’s Composite PMI rose to 52.1, signaling expansion in both manufacturing and services. Despite the gain, ongoing tariffs continue to raise costs, fueling inflation concerns and prompting firms to stockpile goods.
Service exports fell sharply, especially in tourism, as immigration policies and political rhetoric dampened demand. Economists expect weak GDP growth under 1% and rising core inflation, raising the risk of stagflation despite short-term gains.
German Business Sentiment Rises Despite Tariff Worries
German business morale improved more than expected in May, with the Ifo business climate index rising to 87.5 from 86.9. This marks the fifth consecutive increase, driven by stronger future expectations despite ongoing concerns over U.S. tariffs. While optimism grew, the current conditions index dipped slightly. Economists note that firms are focusing more on domestic political stability than trade threats. Still, Germany’s broader economy remains fragile, with flat growth projections and contracting service sector activity signaling potential stagnation ahead.
Uganda Secures $800m From Islamic Devt Bank For Infrastructure Projects
Uganda has secured a $800 million financing deal with the Islamic Development Bank to support major infrastructure projects aimed at enhancing trade and connectivity. Key among them is a planned railway that will link with Kenya’s Standard Gauge Railway and extend to the port of Mombasa, providing the landlocked nation direct access to the Indian Ocean. The three-year agreement also covers developments in health, transport, and energy sectors.
The deal was signed by Uganda’s top finance official, Ramathan Ggoobi, and the bank’s Vice President, Rami Ahmed, during the bank’s annual meeting in Algiers.
Dangote Refinery Cuts Petrol Prices to N875–N905 Nationwide
Dangote Refinery has reduced petrol prices across Nigeria, with Lagos now at N875 per litre and other regions like the South-South and North-East at N905. The N15 price cut was shared on the company’s official X handle and applies to major fuel stations like MRS, Ardova, and Techno Oil.
This follows an earlier drop in the ex-depot price to N835. The refinery says the goal is to make fuel more affordable and reduce the need for imports. Nigerians are advised to buy from approved stations and report any overpricing through its hotlines.
