The stability of global markets is one of the key factors for players in the oil sector. OPEC, which has made it its policy, therefore imposes reduction quotas on the production of its members, including Angola.
Angola, Africa’s second largest oil producer after Nigeria, saw its production increase from 1.4 million barrels of oil per day (bpd) in 2019 to 1.145 million bpd in 2020, a 16% drop, weakening its market share. This is because the country has complied with the opec reduction quota set by OPEC in 2020.
The country’s oil exports to China also took a hit following the Cartel’s decision. Reuters reported that they fell by about 11 percent in the first 11 months of 2020 to 38 million tonnes. Angola has been one of the largest exporters of crude to China for many years.
As a reminder, since the last production agreement between OPEC members in early 2021, Angola can now pump an average of 1.267 million bpd, 87,000 barrels more than the previous quota. This offer will be valid until the end of the first quarter of 2021 and will represent an 11% increase over last year.
Source: Agence Ecofin