The price of Brent oil, a crucial benchmark for Angola’s exports, has remained steady at around $85 per barrel over the past ten days.
During this period, there have been instances where barrels were sold at prices as high as $87.
This current price level far exceeds the reference price of $65 per barrel set in Angola’s 2024 General State Budget, resulting in an extraordinary income of $20 per barrel.
Despite slight fluctuations, such as yesterday’s price of $85.38, which was slightly lower than the previous day, the overall trend remains strong.
Angola aims to produce 1.1 million barrels per day, with expectations of reaching 1.18 million barrels soon.
At a price of $65 per barrel, the estimated daily revenue from 1.1 million barrels is $71.5 million. However, with prices hovering around $85 per barrel, the daily revenue could reach $93.5 million, representing an additional $22 million per day.
Considering the government’s share of around 37 percent in oil sector revenues, the actual earnings for public accounts would be approximately $26.4 million per day at the lower price and $34.5 million per day at the higher price.
Given the volatility of oil prices, which can be influenced by geopolitical and extramarket factors, Angola is prioritizing economic diversification to reduce its dependence on oil.
Currently, oil contributes over 90 percent to the country’s export earnings, highlighting the importance of diversification efforts.
