Oil prices dropped sharply this Friday (20th), marking a reversal after several consecutive days of gains driven by tensions between Iran and Israel.
Benchmark contracts are showing different performances. Brent crude, the reference for Angolan exports, fell 2.5% to $76.88 per barrel, while WTI, the U.S. benchmark, edged down 0.19% to $75.
This movement comes amid ongoing geopolitical uncertainty, with the White House delaying a decision on involvement in the conflict for the coming weeks, as revealed by spokesperson Karoline Leavitt.
Despite Israeli attacks on Iranian energy infrastructure, Iran’s production capacity remains stable, with reports indicating full storage tanks at the Kharg terminal. This situation, combined with OPEC pressure to increase supply, has contributed to the current downward pressure on prices.
Market experts warn of volatility ahead.
“Conciliatory statements from Washington have removed some of the buying pressure that was supporting prices,” said Robert Rennie, analyst at Westpac Banking Corp, who predicts oil will fluctuate between $70 and $80 in the short term.
For Angola, whose economy is heavily dependent on oil revenues, prices below $75 per barrel threaten budget execution and increase pressure on the kwanza exchange rate. Local analysts fear a prolonged downturn could force further adjustments to public accounts and to the economic diversification program.
Source: E&M
