Angola has become the latest OPEC member to announce the beginning of production cuts as part of the group’s deal to curtail production in a bid to lift oil prices, Oil Price reported.
Angolan state oil company Sonangol has cut output by 78,000b/d to 1.673mb/d, informed Africa News. The country is reeling from low oil prices, with oil comprising about 45% of its Gross Domestic Product (GDP) and over 95% of its exports.
Economic growth slowed to about 1% in 2016 driven by a sharp slowdown in the non-oil sector. In June, the International Monetary Fund (IMF) said the Angolan economy continues to be severely affected by the oil price shock experienced in the last two years. The FMI expects GDP will tick up 1.5% in 2017, while consumer prices are expected to have surged by 33.7% in 2016 and to rise by 38.3% in 2017.
State oil company Sonangol has also felt the weight of the oil price slump, to the point that employees have recently complained that they were not being provided basic supplies.