Inflation in Sudan Declines despite Stagnation, Economic Concerns

A man waits to buy food at a market in Khartoum. (REUTERS/Mohamed Nureldin Abdallah)
A man waits to buy food at a market in Khartoum. (REUTERS/Mohamed Nureldin Abdallah)
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Inflation in Sudan Declines despite Stagnation, Economic Concerns

A man waits to buy food at a market in Khartoum. (REUTERS/Mohamed Nureldin Abdallah)
A man waits to buy food at a market in Khartoum. (REUTERS/Mohamed Nureldin Abdallah)

The Central Bureau of Statistics in Sudan said on Tuesday that the annual inflation rate fell for the second month in a row to 125.41 percent in July, compared to 148.88 percent the previous month, after registering 192 percent in May.

The country is facing record inflation rates, amid a sharp devaluation of the Sudanese pound against the US dollar. The economy deteriorated in the wake of last October's events, which caused the suspension of international financing and a severe shortage of hard currency.

In early August, the United Nations Office for the Coordination of Humanitarian Affairs reported that an estimated quarter of Sudan’s population (11.7 million people) faced acute food insecurity from June to September.

In its latest update on the situation in Sudan, the UN Office noted that this number represented an increase of about two million people compared to the same period last year. According to the Food and Agriculture Organization of the United Nations (FAO), a fragile economy, long periods of drought, low cultivated area and erratic rainfall were among the root causes of the increase.

The United Nations News website quoted the Coordination Office as saying that the high prevalence of acute malnutrition in Sudan contributes to increasing morbidity and mortality rates among children under the age of five.

A further increase in acute malnutrition cases is expected, due to multiple factors, including the rising number of people in need of humanitarian assistance, the mounting inflation, and limited coverage of water, sanitation, hygiene and health services.

In a recent report, the Arab Monetary Fund said that the monetary policy in Sudan was facing major challenges since the recent developments, in addition to high rates of inflation.
The Fund added that despite this situation, the Sudanese state was keen to maintain the ongoing economic reforms and to contain inflation amid the pressures imposed by the high levels of the public budget deficit.



China's Iran Oil Imports Surge in June on Rising Shipments, Teapot Demand

FILE PHOTO: An aerial view shows a crude oil tanker at an oil terminal off Waidiao island in Zhoushan, Zhejiang province, China January 4, 2023. China Daily via REUTERS
FILE PHOTO: An aerial view shows a crude oil tanker at an oil terminal off Waidiao island in Zhoushan, Zhejiang province, China January 4, 2023. China Daily via REUTERS
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China's Iran Oil Imports Surge in June on Rising Shipments, Teapot Demand

FILE PHOTO: An aerial view shows a crude oil tanker at an oil terminal off Waidiao island in Zhoushan, Zhejiang province, China January 4, 2023. China Daily via REUTERS
FILE PHOTO: An aerial view shows a crude oil tanker at an oil terminal off Waidiao island in Zhoushan, Zhejiang province, China January 4, 2023. China Daily via REUTERS

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

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

Kpler's data put the month-to-date average of China's Iranian oil and condensate imports at 1.46 million bpd as of June 27, up from one million bpd in May.

The rising imports are fueled in part by the accelerated discharge of high volumes of Iranian oil on the water after export loadings from Iran reached a multi-year high of 1.83 million bpd in May, Kpler data showed.

It typically takes at least one month for Iranian oil to reach Chinese ports, Reuters reported.

Robust loadings in May and early June mean China's Iran imports are poised to remain elevated, Kpler and Vortexa analysts said.

Independent Chinese "teapot" refineries, the main buyers of Iranian oil, also showed strong demand for the discount barrels as their stockpiles depleted, said Xu Muyu, Kpler's senior analyst.

A possible relaxing of US President Donald Trump's policy on Iranian oil sanctions could further bolster Chinese buying, she added.

Trump said on Wednesday that Washington has not given up its maximum pressure campaign on Iran - including restrictions on Iranian oil sales - but signaled a potential easing in enforcement to help the country rebuild.

For this week, Iranian Light crude oil was being traded at around $2 a barrel below ICE Brent for end-July to early-August deliveries, two traders familiar with the matter said, compared to discounts of $3.30-$3.50 a barrel previously for July deliveries.

Narrower discounts were spurred by worries that oil flows could be disrupted through the Strait of Hormuz, a critical waterway between Iran and Oman, traders said.

Market fears for a closure of the chokepoint had escalated after last weekend's US attack on Iranian nuclear sites but eased after Iran and Israel on Tuesday signaled a ceasefire.

Tighter discounts for Iranian oil come amid a retreat in futures prices. ICE Brent crude futures hovered at $68 per barrel on Friday, their level before the Israel-Iran conflict began and down 19% from Monday's five-month peak.