Angola: Oil prices continue to drop in September
August 17, 2015
In August, the average price of Angola’s Cabinda oil fell 18.1% over the previous month, reaching USD 45.5 per barrel. The reading marked a steeper contraction over the previous month’s 7.6% drop. In annual terms, the average oil price recorded a 46.9% drop, which was down from the 41.7% decline seen in July and marked the 15th consecutive annual fall in prices. That said, the print represented just a 7.2% gain over the USD 42.4 per barrel tallied on 13 January, when Cabinda oil recorded the lowest price since 2009.
Oil prices continued to drop in September. On 7 September, the price of Angola’s Cabinda oil fell to USD 44.9 per barrel, which was 3.3% lower than on the same day of the previous month and 53.9% weaker than on the same day of the previous year. A stronger U.S. dollar combined with concerns over a global supply glut continue to weigh on oil prices. The Angolan government heavily relies on oil revenues because oil accounts for 97% of the country’s exports. Plunging oil prices, which have left the government limited space for fiscal consolidation, have also pushed the local currency to all-time lows.
In August, Angola’s oil production reached 1.75 million barrels per day (mbpd), which was a deterioration over the 1.80 mbpd recorded in the previous month.
Author: Dirina Mançellari, Senior Economist