Angola: Angola Cabinda oil reaches highest price since October in May
June 20, 2016
In May, the average price of Angola’s Cabinda oil rose a solid 13.2% over the previous month, reaching USD 45.7 per barrel and marking the highest reading since October 2015. In annual terms, the average oil price fell 27.4%, which followed the 29.8% decline seen in April and represented the twenty-fourth consecutive month showing a drop.
Oil prices continued to tick up in June. On 15 June, the price of Angola’s Cabinda oil was USD 46.36 per barrel, which was 1.12% higher than on the same day in May, but was 22.36% lower than on the same day of the previous year. Cabinda oil prices are 32.27% higher on a year-to-date basis.
In May, Angola’s oil production reached 1.80 million barrels per day (mbpd), which came above the 1.78 mbpd print tallied in April.
Oil prices have remained elevated despite the failure of OPEC and non-OPEC countries to reach an agreement in June to freeze output. Supply outages in key markets such as Argentina, Colombia and Nigeria, coupled with healthier demand from key markets, namely India, have exerted upward price pressures.
Author: Dirina Mançellari, Senior Economist