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Angola may lose USD 6 million / day with oil cut

Sat, 11 Apr 2020 13:04 - Updated Sat, 11 Apr 2020 16:17

Offshore oil platform Girassol

Photo: Francisco Miúdo

Luanda- Angola will record a loss of around six million dollars per day, as of 1 May, if 348,000 barrels of oil are cut in its daily production, said Friday, the analyst and specialist of the sector, Patrício Quingongo.

The forecast is based on the agreement reached last Friday dawn by the OPEC and non-OPEC countries to reduce 10 million barrels of world production, to balance supply and increase prices.

Angola currently produces 1.4 million barrels of oil / day and will reduce it to 1.180 million barrels, the result of the adjustment made during the meeting held by video conference.

The specialist, who spoke to ANGOP, considered the materialization of this measure to be important, justifying that it was the only way to avoid a drop in crude oil up to USD 20 per barrel.

Despite considering the measure of implementation of the cut in production to be positive, the analyst stressed that it should have been done a month and half ago, since the market is in excess of oil of over 800 million barrels and demand has fallen by more than 30 percent.

For Patrício Quingongo, the impact of the cut in oil production will not only be in prices, but will help to reduce excess oil in the market, although the country may see a negative reduction between the fall in oil prices and production.