KBRA Releases Macro-Market Research: The Tale of Three African Oil Producers

DUBLIN & NEW YORK--()--Top oil producing countries in Africa -- Nigeria, Algeria and Angola -- have been hurt badly since 2014 by both the global recession and the collapse of oil prices. These trends have exposed many cyclical and structural problems including losses in fiscal receipts, fiscal underperformance, and overly concentrated revenues, and have led to currency depreciation, soaring inflation, and falling international reserves. Negative developments were somewhat reversed in 2017 with a return to economic growth in all three producers thanks to the rebound in energy prices. Synchronised global growth and heightened geopolitical tension in the Middle East are providing a boost to the outlook for energy prices, suggesting strong oil prices are likely to continue over the medium term. In this macro market research piece, we discuss developments underpinning the improved oil price outlook, breakeven oil prices needed to balance the fiscal accounts, the role of fiscal policy in determining deficits, and constraints on necessary revenue diversification in all three economies.

Please click here to access the full report.

CONNECT WITH KBRA

Twitter 
LinkedIn 
Download the iOS App 
YouTube

About KBRA and KBRA Europe

Kroll Bond Rating Agency, Inc. is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, Kroll Bond Rating Agency, Inc. is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical Contacts:
Kroll Bond Rating Agency
Elliott Jordan-Doak, +1-646-731-3360
Contributor
edoak@kbra.com
or
Joan Feldbaum-Vidra, +1-646-731-2362
Managing Director, Sovereigns
jfeldbaumvidra@kbra.com

Contacts

Analytical Contacts:
Kroll Bond Rating Agency
Elliott Jordan-Doak, +1-646-731-3360
Contributor
edoak@kbra.com
or
Joan Feldbaum-Vidra, +1-646-731-2362
Managing Director, Sovereigns
jfeldbaumvidra@kbra.com