Africa Oil & Gas: Angola Minister expects oil prices to rise

Oil prices should increase in the second quarter of 2015, Angola’s Oil Minister said in Luanda, noting that current international oil prices were “worrying”. Minister Jose Maria Botelho de Vasconcelos was commenting on a section of the New Year message from President of the Republic, José Eduardo dos Santos on Monday, according to which 2015 will be difficult economically because of the significant drop in wholesale oil prices.

“We know that Angola’s economy is based on oil, so we must wait for the first quarter to bring completely different signs and to show a growing trend in oil prices,” said the minister.

Commenting on the recent fuel price update, Botelho de Vasconcelos said that “it is creating a different environment because revenues achieved by reducing subsidies will contribute to supporting some projects and government programmes.”

The prices of gasoline and diesel increased by 20 percent from 26 December, 2014, with a litre of gasoline sold to the public at a price of 90,00 kwanzas and a litre of diesel at 60,00 kwanzas.

The minister also said that Angola’s production capacity had risen, with production rising to 1.83 million barrels a day, according to Angolan news agency Angop. (macauhub/AO)