Angola: Oil prices drop in July
July 16, 2015
In June, the average price of Angola’s Cabinda oil fell 4.50% over the previous month, reaching USD 58.95 per barrel. The reading contrasted the 9.40% increase recorded in the previous month. In annual terms, the average oil price recorded a 39.61% drop, which was slightly up from the 39.79% decline seen in May and marked the 13th consecutive annual fall in prices. That said, the print represented a 38.71% 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 July. On 7 July, the price of Angola’s Cabinda oil fell to USD 56.29 per barrel, which was 4.38% lower than on the same day of the previous month and 47.15% 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 June, Angola’s oil production reached 1.77 million barrels per day (mbpd), which was an improvement over the 1.76 mbpd recorded in the previous month.
Author: Dirina Mançellari, Senior Economist