The stability of world markets is one of the key factors for players in the oil sector. OPEC, which has made this its policy, therefore imposes reduction quotas on the production of its members, including Angola.
Angola, the second largest oil producer in Africa behind Nigeria, saw its production drop from 1.4 million barrels of oil per day (bpd) in 2019 to 1.145 million bpd in 2020, a drop of 16 %, thus weakening its market share.
This is because the country has complied with the reduction quota established by OPEC in 2020. The country’s oil exports to China have also taken a hit following the Cartel move.
This is what Reuters reported, which said they fell about 11% in the first 11 months of 2020 to 38 million tonnes. Note that 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, or 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 increase of 11% compared to last year.
Source Ecofin Agency