Oil | - Part 12

Oil recovers some losses but the impacts continue

Lagos, Nigeria, Capital Markets in Africa — Crude oil prices recovered some losses last week, with Brent crude ending at US$32.18/bbm after falling to a 12-year low of US$27.88 on Wednesday. Prices still remain down YTD (Brent down 15% and WTI down 18%). The chairman of Saudi Arabia’s state oil company has recently commented that the collapse below US$30/bbm is “irrational” and that prices would be higher by the end of 2016. However, the sustained…

Lower oil prices to strain net exporters, offer respite to importers

Posted on by The Editorial Team

Lower oil prices will reverse the financial performance of oil exporters and importers in 2015, with exporters’ public finances coming under renewed pressure and importers given some help in reducing their deficits, Moody’s Investors Service says in a report published today. Moody’s report, entitled “Global Oil Price Shock: Challenges for Oil-Exporting Sovereigns, Breathing Space for Importers” is available on www.moodys.com. The impact of cheaper energy means oil exporters face worsening fiscal and external balances, with some…

Oil producer Afren gains another extension on debt payment

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March 2 (Reuters) – Debt-laden oil producer Afren Plc said it had been given another payment extension by some creditors, a day after the Sunday Times reported that China’s Fosun International Ltd was backing a takeover bid for the company. Afren’s shares rose as much as 39 percent to 12 pence in early trading on the London Stock Exchange on Monday. The company, whose main operations are in Nigeria, made no reference to Fosun in…

Drop in oil prices to impact Angolan public finances

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Business Monitor International (BMI) projected real GDP growth in Angola to decelerate from 4.1% in 2014 to 3.8% in 2015, assuming an average global oil price of $55 per barrel. It said that the non-oil economy has been the main engine of activity in recent years, but most of the growth has been indirectly underpinned by oil revenues channelled through government spending. As such, it expected cuts in government spending on the back of lower…

Africa’s Oil & Gas Explorers Must Rethink Capex on Exploration

Posted on by The Editorial Team

JOHANNESBURG, South-Africa, February 17, 2015/ — Oil & gas explorers must rethink their capital expenditure on exploration activity across the African continent in the wake of the significant drop in the global oil price, according to an analysis on the oil & gas industry in Africa released by PwC . “Oil & gas explorers will be relooking at their budgets and deciding where to allocate their limited capital spend given the substantial decline in the…

Who Gains and Who Loses from Plunging Oil Prices?

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Judging by the futures market, where the price of oil for delivery in August 2015 is US$56 per barrel, there is little optimism about a recovery in oil prices. With cheap oil looking like it is here to stay, the latest Quarterly Economic Bulletin offers a breakdown by country of the potential regional consequences. Here are the highlights: Gulf Cooperation Council (Loss) oil and gas revenues in 2013 accounted for over half of the Gulf economies’ GDP and 75%…

Drop in oil prices to support global growth

Posted on by The Editorial Team

The World Bank anticipated that the decline in global oil prices would have significant macroeconomic, financial and policy implications on the global economy. First, the Bank pointed out that sustained lower global oil prices would contribute to global growth, would temporarily reduce the global inflation rate in 2015 and would generate substantial real income shifts to oil importers from oil-exporters. But it noted that the recovery in global growth would be slow. It said that…

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