Angola: Oil prices pick up in April
April 23, 2015
In March, the average price of Angola’s Cabinda oil fell 2.4% over the previous month, reaching USD 52.08 per barrel. The reading notably contrasted the 22.6% increase recorded in the previous month. In annual terms, the average oil price recorded a 50.9% drop, which followed the 48.9% decline tallied in February and marked the 10th consecutive fall in annual prices. That said, the print represented a 37.7% gain over the USD 42.4 per barrel tallied on 13 January, when Cabinda oil recorded the lowest price since 2009.
While oil prices have been on a free fall since July of last year, a slight pickup was recorded in recent weeks. On 20 April, the price of Angola’s Cabinda oil reached USD 58.36 per barrel, which was 11.65% higher than in the same day of the previous month, but 47.30% weaker than in the same day of the previous year. Nevertheless, a stronger U.S. dollar and anticipations that Iran will ship more oil in the already flooded market once a full deal is reached with the West continues 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.
Angola’s oil production reached 1.76 million barrels per day (mbpd) in March, which was an improvement over the 1.75 mbpd recorded in the previous month.
Author: Dirina Mançellari, Senior Economist