Akintunde Oyedokun
Research Analyst
Oil prices dropped around 1% Tuesday on fears of oversupply, driven by progress in U.S.-Iran nuclear talks and uncertainty ahead of the OPEC+ meeting. Brent settled at $64.09, WTI at $60.89. While no major OPEC+ policy change is expected, any breakthrough with Iran could increase global supply. U.S. crude stocks are also projected to rise. Offsetting the decline, Trump’s delay of EU trade tariffs boosted market sentiment, and Canadian wildfires led to temporary production halts.
Japan’s Service Inflation Holds At 3.1%, Keeping Rate Hike Hopes Alive
Japan’s service-sector inflation rose 3.1% year-on-year in April, slightly down from March’s revised 3.3%, according to Bank of Japan data. The services producer price index, a key gauge watched by the BOJ, signals continued pricing power and supports expectations for further rate hikes. While the BOJ raised rates to 0.5% in January after ending years of stimulus, global economic pressures—like higher U.S. tariffs—have complicated its growth outlook and policy timing.
U.S. Consumer Confidence Rebounds In May Amid Eased China Tariffs
U.S. consumer confidence rose in May after five months of decline, driven by easing trade tensions with China. The Conference Board’s index jumped 12.3 points to 98.0, surpassing expectations. The improvement gained strength following the May 12 announcement to reduce tariffs on Chinese goods. However, consumers remain concerned about the impact of tariffs on prices and the broader economy.
Guinea Revokes 129 Mineral Permits To Reclaim Idle Resources
Guinea’s military-led government has cancelled 129 mineral exploration permits, mainly for gold, to reclaim unused resources and attract new investors. The Ministry of Mines cited a shift to a digitized system for better oversight. This move follows the recent withdrawal of 51 inactive mining licenses and earlier actions targeting major bauxite operators. As the holder of the world’s largest bauxite reserves, Guinea is tightening resource control—echoing similar strategies by other West African military regimes.
Tinubu Requests $21.5bn Loan To Support 2025–26 Budget, Infrastructure Projects
President Bola Tinubu has requested approval from parliament for over $21.5bn in foreign loans, along with €2.2bn, ¥15bn, and $2bn in domestic borrowing, to finance Nigeria’s 2025–26 budget.
The borrowing will cover 60% of the budget, focusing on infrastructure, agriculture, healthcare, education, and job creation. Tinubu cited the country’s infrastructure deficit and the need for strategic borrowing to stimulate economic growth.
Despite economic reforms causing inflation, the World Bank noted Nigeria’s fastest growth in a decade in 2024.
