Ver Angola

Energy

Consultant says more expensive oil price compensates for reduction in production

Consultant NKC African Economics estimated that despite oil production in Angola expected to fall 3.7 percent this year, the price increase in international markets will guarantee an increase in state revenues.

:

"We anticipate that oil production in Angola will fall 3.7 percent this year, to 1.27 million barrels per day, due to the depletion of aging oil wells, but the significant recovery in prices will support the recovery in value of petroleum exports and guarantee an increase in foreign reserves in 2021 ", reads a comment to the national economy.

In the analysis, to which Lusa had access, the economists of this African branch of the consultancy Oxford Economics write that "the volume of international reserves stood at US $ 14.3 billion at the end of January, increasing from 13.8 billion dollars recorded at the end of December 2020, but still about 10 percent below a year ago. "

This increase in 'savings' in foreign currency contributed to the increase in oil prices, to almost $ 50 per barrel, an increase of 1.2 percent in exports and the increase in deposits in foreign currency, in the amount of 485 million euros. dollars, analysts say, noting that "despite the reduction in reserves during 2020, the amount of cover for imports remains adequate".

In addition, they add, "the Government continues to receive budget support from several multilateral creditors and has also obtained debt service relief from the G20 countries, which helps to alleviate fears about sovereign financial default. ", which, together with the forecast of an increase in the price of oil to an average of $ 61.7 per barrel, is positive for the country's public accounts.