Angola to Ship Most Crude in Four Years to Meet Asian DemandManisha Jha and Sherry Su
Angola will export the most crude in almost four years in October as the OPEC member satisfies Asian demand and offsets diminished revenue from lower oil prices.
Africa’s second-largest producer plans to ship 1.83 million barrels a day in October, the most since November 2011, according to a preliminary loading program obtained by Bloomberg. This compares with 1.77 million barrels a day in September.
Angola slashed its budget by a quarter in response to the slump in crude prices, which have lost more than 50 percent in the past year. The African nation’s bid to recapture revenues is supported by demand in China, the world’s second-biggest oil-consumer, which imported near-record levels of crude in July.
“Angola continues to profit mainly from Chinese demand, in addition to some demand from India and Indonesia,” said Ehsan Ul-Haq, an analyst at KBC Economics in London.
The single biggest increase will be in shipments of Dalia, which will expand by more than 55,000 barrels daily to 245,000 barrels a day, according to the schedules. Total SA boosted output at Block 17 at the Dalia complex by 20,000 barrels a day in July, helping push production at the field toward 200,000 barrels a day, the International Energy Agency said on Aug. 12.
Angolan shipments will appear especially attractive to buyers in India and China because of the current price relationship between West African supplies and Asia’s regional crude benchmark, Dubai-Oman, said Abhishek Deshpande, an analyst at Natixis SA in London.
Angola’s production reached 1.8 million barrels a day last month, the IEA estimates.
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