The price of Brent crude oil, a key benchmark for Angolan exports, fell below $80 a barrel for the first time since February.
Brent for August delivery dropped 2.62% to $78.93 a barrel. The North American benchmark, West Texas Intermediate (WTI), for July delivery, also declined 2.86%, settling at $74.79 a barrel.
This price decline coincides with the recent decision by OPEC+ (Organization of the Petroleum Exporting Countries and allies) to extend production cuts.
On Sunday, the group announced they will maintain current production restrictions until the end of September. These cuts aim to support oil prices by limiting supply.
However, the plan isn’t to keep these cuts in place indefinitely. OPEC+ intends to gradually reintroduce some of the withheld barrels into the market over the next year.
While the overall production cuts will be eased in September, some key OPEC+ members are planning to extend their voluntary production cuts beyond 2024. These voluntary cuts currently sit at around 2.2 million barrels per day (bpd).
