Sudan Inflation Soars as Economic Crisis Bites

Motorists queue to fuel from the Matthew Petroleum station in Khartoum, Sudan January 6, 2019. (Reuters)
Motorists queue to fuel from the Matthew Petroleum station in Khartoum, Sudan January 6, 2019. (Reuters)
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Sudan Inflation Soars as Economic Crisis Bites

Motorists queue to fuel from the Matthew Petroleum station in Khartoum, Sudan January 6, 2019. (Reuters)
Motorists queue to fuel from the Matthew Petroleum station in Khartoum, Sudan January 6, 2019. (Reuters)

Sudan's annual inflation rate has topped 80 percent, the government said Tuesday, as the country grapples with an acute economic crisis.

"The annual inflation rate reached 81.64 percent in March, compared to 71.36 in February," the Central Bureau of Statistics said in a statement, attributing the rise to price hikes including on food.

Sudanese authorities have hiked bread prices, with one Sudanese pound now buying only a 50-gram loaf of bread, compared to 70 grams before.

Many Sudanese still queue for hours to buy staple foods or gas up their car, reported Reuters.

The country remains in deep economic crisis one year after mass protests led to the military ouster of strongman Omar al-Bashir, ending his 30-year-rule.

The anti-Bashir protests, which erupted late 2018, were triggered by a government decision to triple bread prices before morphing into broader calls for political change.

Sudan's economic woes have been further compounded by the coronavirus outbreak which pushed authorities to impose a lockdown on Khartoum state, including the capital.

Under Bashir, Sudan's economy was dealt severe blows ranging from decades-long US sanctions to the 2011 secession of oil-rich South Sudan.

Despite Washington lifting some sanctions in 2017, Khartoum remains on a US blacklist as a state sponsor of terrorism, stifling investment.

A transitional administration which took power in August has been pushing to boost Sudan's international standing and to boost ties with the US.



Oil Extends Decline on Surprise US Inventory Builds

FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo
FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo
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Oil Extends Decline on Surprise US Inventory Builds

FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo
FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo

Oil prices fell for a third straight session on Thursday as unexpected increases in US crude and fuel inventories raised concerns about demand from the world's largest oil consumer while investors eyed renewed Iran-US nuclear talks.

Brent futures edged 16 cents lower to $64.75 a barrel by 0630 GMT, while US West Texas Intermediate crude weakened 10 cents to $61.47.

Both benchmarks fell earlier in the session after US crude and fuel inventories posted surprise stock builds last week, the Energy Information Administration said on Wednesday, as crude imports hit a six-week high and gasoline and distillate demand slipped.

Crude inventories rose by 1.3 million barrels to 443.2 million barrels in the week ended May 16, the EIA said. Analysts in a Reuters poll had expected a 1.3 million-barrel drawdown.

"The EIA's reported surprise stock builds will have a downward pressure particularly on WTI," said Emril Jamil, a senior analyst at LSEG Oil Research. He added this could further incentivise more US exports to Europe and Asia.

Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities, said: "While rising US inventories have raised concerns, some investors expect the summer driving season starting after Memorial Day weekend to draw down stocks, limiting further downside."

Both benchmarks lost 0.7% on Wednesday after Oman's foreign minister said the fifth round of nuclear talks between Iran and the United States will take place on Friday in Rome.

Prices had jumped earlier on Wednesday following a CNN report that US intelligence suggests Israel is preparing to strike Iranian nuclear facilities, although it was not clear whether Israeli leaders have made a final decision.

Iran is the third-largest producer among members of the Organization of the Petroleum Exporting Countries and an Israeli attack could upset supply from the country.

"Traders remain cautious, avoiding large positions as they assess conflicting signals over US-Iran nuclear talks and a media report of potential Israeli strikes on Iranian nuclear facilities," said Kikukawa.

Priyanka Sachdeva, senior market analyst at Phillip Nova, said: "Additionally, Ukraine suggested that it would seek harsher sanctions on Russia from the EU, which could further disrupt the flow of Russian oil barrels to global markets."

Ukraine will ask the EU next week to consider big new steps to isolate Moscow, according to a white paper, including seizing Russian assets and bringing in sanctions for some buyers of Russian oil.