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 Set for Steepest Weekly Decline in Two Years as Risk Subsides

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Set for Steepest Weekly Decline in Two Years as Risk Subsides

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices rose on Friday though were set for their steepest weekly decline since March 2023, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate.

Brent crude futures rose 50 cents, or 0.7%, to $68.23 a barrel by 1036 GMT while US West Texas Intermediate crude gained 49 cents, or nearly 0.8%, to $65.73.

During the 12-day war that started after Israel targeted Iran's nuclear facilities on June 13, Brent prices rose briefly to above $80 a barrel before slumping to $67 a barrel after US President Donald Trump announced an Iran-Israel ceasefire.

That put both contracts on course for a weekly fall of about 12%.

"The market has almost entirely shrugged off the geopolitical risk premiums from almost a week ago as we return to a fundamentals-driven market," said Rystad analyst Janiv Shah.

"The market also has to keep eyes on the OPEC+ meeting – we do expect room for one more month of an accelerated unwinding basis balances and structure, but the key question is how strong the summer demand indicators are showing up to be."

The OPEC+ members will meet on July 6 to decide on August production levels.

Prices were also being supported by multiple oil inventory reports that showed strong draws in the middle distillates, said Tamas Varga, a PVM Oil Associates analyst.

Data from the US Energy Information Administration on Wednesday showed crude oil and fuel inventories fell a week earlier, with refining activity and demand rising.

Meanwhile, data on Thursday showed that the independently held gasoil stocks at the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell to their lowest in over a year, while Singapore's middle distillates inventories declined as net exports climbed week on week.

Additionally, China's Iranian oil imports surged in June as shipments accelerated before the conflict and demand from independent refineries improved, analysts said.

China is the world's top oil importer and biggest buyer of Iranian crude. It bought more than 1.8 million barrels per day (bpd) of Iranian crude from June 1-20, according to ship-tracker Vortexa, a record high based on the firm's data.