Africa’s largest oil producers have been among the main beneficiaries of rising oil prices, driven by escalating pressure from the United States on Iran, reports financial news agency Bloomberg.
Citing Nigeria and Angola as some of the countries that have most benefited from the recent increase in oil prices, the agency notes that their dollar-denominated debt securities led gains, with Angola’s debt maturing in 2035 improving by more than 1% to be traded at 99 cents.
The increase in secondary market trading values for these debts indicates investor confidence in the issuing country’s financial credibility, in a context where rising geopolitical risks linked to US pressure on Iran have caused oil prices to climb.
“Higher oil prices relieve budgetary pressure and are motivating strategic bets in countries like Nigeria and Angola,” commented Smail Ait-Mahrez, an analyst at Marex, a financial investment firm.
Brent crude started the year at $61 per barrel and rose to $66 per barrel this week, though it is not expected to maintain these levels over the coming quarters.
“We may see a rise, but I don’t think it will last; still, this is good for global growth, inflation, and oil importers, but it will be a challenge for oil exporters in emerging markets,” said Guy Miller, Chief Strategist at Zurich Insurance, to Bloomberg.
Angola’s General State Budget for this year projects an average oil price of $61 per barrel.
