Angola Commodities June 2023

Angola: Angola oil output and Brent prices fall in June

Brent prices averaged USD 75.0 per barrel in June, down 1.0% from May’s price and 36.3% lower year on year. Conversely, on 30 June, Brent traded at USD 74.5 per barrel, 1.3% higher month on month. Underwhelming Chinese economic data and decades-high interest rates in the U.S. weighed on prices.

Turning to production, Angola oil output decreased to 1.10 million barrels per day (mbpd) in June from May’s 1.15 mbpd. Meanwhile, overall OPEC+ output rose to 28.19 from 28.10 mbpd in the same two respective months, chiefly reflecting higher production in Iran, Iraq and Saudi Arabia.

Our panelists see Angola oil production slightly below last year’s levels in 2023 and well below the 1.49 mbpd 10-year average. Maturing fields amid a lack of enhanced oil recovery techniques, lower output at previously overproducing wells, and maintenance work will all dent production.

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