Oil revenues in Angola rose 71.1% in the first half of the year, compared with the first six months of last year, despite production increasing by only 3.3%, according to consultancy Oxford Economics Africa.

"Despite historically low levels of oil production, Angola's Ministry of Finance statistics continue to show a strong improvement in government oil revenues, mainly due to higher prices," the analysts write, noting that revenues reached 4.2 trillion kwanzas, about 96.3 billion euros, in the first half of the year.

In a commentary on Angola's oil production figures, Oxford Economics Africa analysts estimate an increase in production this year from 1.13 million barrels per day in 2021 to 1.18 million this year, but the forecast has a big risk called China, the main buyer of Angola's oil.

"Although restrictions eased in major Chinese cities in June, the risk of further surges and confinements, which could limit Chinese demand for crude, remains high," the analysts say, noting that China is the 70% buyer of oil from Angola, which was bought at $112.7 per barrel in June.

"Angola faces strong competition from Russia, which may force the country to lower the price of cargoes, as Russia is making cheap oil available to Chinese refineries against a background of an embargo on Russian oil by other countries; in fact, in May Russia already overtook Saudi Arabia as China's main oil supplier," Oxford Economics Africa points out. (Lusa)