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Prospect of lower oil costs puts pressure on Angola, finance minister states

The possibility of lower oil rates puts lots of pressure on Angola, the country's finance minister told Reuters on Friday, including that she expected to see rates average around $70 to $72 per barrel compared to $75 in 2024.

The federal government of Africa's second-largest petroleum exporter will likewise continue to phase out fuel subsidies, Financing Minister Vera Daves de Sousa said in an interview on the sidelines of the IMF and World Bank annual conferences in Washington.

The number of steps we didn't decide yet, but our concept is to do it in actions, she said, verifying that aids were amounting to around 4% of GDP this year.

Angola left the Company of the Petroleum Exporting Countries at the beginning of this year.

Brent unrefined futures settled up 2.25% to $76.05 a. barrel on Friday. Experts have cautioned that oil rates would. come under pressure next year due to ample supply and lackluster. need.

Daves de Sousa stated the federal government will provide its budget plan. to Parliament next week, with figures on external financing. needs being settled over the next couple of days.

She said Angola was internally analyzing the possibility. of requesting a funding program from the International. Monetary Fund.

We requested for a note with options of programs in case we. request, and considering our existing situation, what they. understand as a good program for us, she stated.

She said the federal government was also thinking about other. choices, such as a mix of funding from other multilateral. sources such as the World Bank and the African Advancement Bank,. along with domestic capital markets and banks.

The most current IMF program with Angola was for $3.7. billion, authorized in December 2018 after global crude costs. tanked, annihilating the nation's incomes.

(source: Reuters)