Angola: Oil prices plummet to over-six-year-low in November
December 11, 2015
In November, the average price of Angola’s Cabinda oil dropped 9.1% over the previous month, reaching USD 42.7 per barrel. The reading marked the first decrease in oil prices following two consecutive months of increase. The global supply glut is driving oil prices down and November’s result was the lowest reading since February 2009. In annual terms, the average oil price dropped 44.5% in November. This is a slight deterioration from the 45.1% decline seen in October and represents the 18th consecutive monthly decline.
Oil prices dropped further in early December as OPEC confirmed that it would keep its output level unchanged for 2016. On 9 December, the price of Cabinda oil fell to USD 37.61 per barrel, which was 14.17% lower than on the same day of the previous month and a notable 11.7% lower than on the same day of last year. More importantly, the reading tallied on 9 December was the lowest since 2009. A stronger U.S. dollar combined with concerns over a global oil oversupply continue to weigh on oil prices. Plunging prices, which have forced the government to cut planned spending by more than 50% this year, have also pushed the local currency to all-time lows.
In November, Angola’s oil production reached 1.80 million barrels per day (mbpd), which was higher than the 1.75 mbpd recorded in October.