Angola: Cabinda crude oil edges higher in January
The average price of Angola’s Cabinda crude oil rose from USD 64.8 per barrel in December to USD 69.2 per barrel in January. January’s print was 27.1% higher in year-on-year terms and 6.8% above the average price observed in December. The monthly reading marked the highest price since November 2014.
Supply and demand dynamics were largely behind January’s increase. Expectations of strong demand in 2018 due to an improved global economic outlook have lifted prices for the commodity. On the supply side, the OPEC-led oil production deal continues to bear fruit. The latest data shows that compliance reached 137% in January, exceeding December’s rate of 129%. Strong compliance with the deal offset higher shale oil production in the United States in January, contributing to higher prices.