Angola: Angolan oil output ticks down in August
Latest reading: Brent crude oil prices averaged USD 79.02 per barrel in August, down 6.0% from July. On 30 August, the commodity traded at USD 78.89 per barrel, down 2.2% from 31 July. Prices fell as OPEC+ inched closer to increasing its output and concerns over the Chinese and U.S. economies increased.
On the production front, Angolan oil output ticked down to 1.17 million barrels per day (mbpd) in August from 1.18 mbpd in July. August’s reading was in line with national oil firm ANPG’s expectations but remained entrenched below the past-decade average of 1.44 mbpd.
Outlook: Oil output is set to edge up from 2023’s slump of 1.10 mbpd this year as a whole. Angola’s exit from OPEC at end-2023 has driven increased investor interest in the hydrocarbons sector, translating into a gradual recovery. Moreover, the conclusion of maintenance in the Dalia oilfield in early 2024 and the continued implementation of the government’s 2020-2025 Hydrogen Exploration strategy has added further impetus to the sector. Lastly, global tech giant SLB’s recent announcement that it will inaugurate its new facility in Luanda in November will enhance production efficiency and minimize losses in Angolan hydrocarbons production, boding well for oil output. That said, production will remain well below its past-decade average, as maturing oil fields will continue to weigh on the sector in the near term.