Angola: Cabinda crude oil prices recover slightly in January
February 18, 2019
The average price of Angola’s Cabinda crude oil rose from USD 56.6 per barrel (pb) in December to 59.5 pb in January. January’s price was 5.0% above the average price observed in the previous month but was 14.1% lower in year-on-year terms.
Global oil prices reversed the downward trend of most of December and climbed throughout January, chiefly on the news that the oil cap deal signed by OPEC and Russia is gradually tightening global oil production. In addition, prices gained further support from supply disruptions in Libya, the worsening state of Venezuela’s oil industry and ongoing sanctions restraining Iran’s oil exports.
Oil production in Angola slumped to an over 12-year low of 1.52 million barrels per day (mbpd) in January, from 1.57 mbpd in December. In a similar fashion, crude oil production among OPEC countries fell from 31.60 (mbpd) in December to 30.81 mbpd in January, according to the latest OPEC report published on 12 February.
Oil prices are expected to continue trending upwards in coming months thanks to tighter global supply of black gold. Nevertheless, a potential global economic slowdown, partly due to the ongoing trade spat between Beijing and Washington, and still-elevated oil production are likely to limit price gains.
Author: Almanas Stanapedis, Economist