Angola: Cabinda crude oil prices rise in November; Angolan production dives to over 13-year low in the same month
December 11, 2019
The average price of Angola’s Cabinda crude rose to USD 64.7 per barrel (pb) in November, from USD 60.7 pb in October, marking the second highest price since July. November’s price was 4.8% above the average price observed in the previous month but 0.9% lower in year-on-year terms.
In November, global oil prices were supported by news that OPEC+ countries could extend the current agreement or even deepen output cuts further at the 5–6 December OPEC meeting, as well as by optimism over the “phase one” trade deal between China and the U.S. That said, subdued global economic growth capped price gains somewhat.
Oil production in Angola fell to 1.30 million barrels per day in (mbpd) in November, from 1.36 mbpd in October, marking the lowest output since June 2006. Meanwhile, according to the latest OPEC report published on 11 December, crude oil production among OPEC countries edged down to 29.55 mbpd in November from 29.74 mbpd in October.
Looking forward, the outlook for oil prices remains muted. Despite optimism about an extension of the oil cut deal, oil prices are likely to remain subdued further down the road amid a fragile global economy, uncertainty regarding trade relationships between China and the United States and still-robust output in the U.S.
Author: Almanas Stanapedis, Economist