"Despite historically low levels of oil production, statistics from the Angolan Ministry of Finance continue to show a strong improvement in government oil revenues, mainly due to higher prices," the analysts write, noting that revenues reached 4.2 billions of kwanzas in the first half.
In a commentary on Angola's oil production figures, analysts from Oxford Economics Africa estimate an increase in production this year, from 1.13 million barrels a day in 2021, to 1.18 million this year, but the forecast has a big impact risk called China, the main buyer of Angolan oil.
"Although restrictions eased in major Chinese cities in June, the risk of new outbreaks and confinements, which could limit Chinese demand for crude, remains high", say analysts, noting that China is the buyer of 70 percent of the oil coming from Angola, which was purchased at 112.7 dollars per barrel in June.
"Angola faces strong competition from Russia, which may force the country to lower the price of cargo, as Russia is making cheap oil available to Chinese refineries in a context of an embargo on Russian oil by other countries; in fact, in May, Russia has already overtaken Saudi Arabia as the main supplier of oil to China", highlights Oxford Economics Africa.
