Can oil prices rise give African producers a windfall?

On Tuesday, Brent crude settled at 86.95 dollars a barrel. A record in almost a decade.

Brent crude reached a multi-year high on Monday. Trading at more than 86.48 dollars a barrel the day before, black gold prices matched their 2014 record.

This increase was boosted by a low supply and a high demand and a strong global energy demand. Can African oil-producing nations take advantage of it?

The Organization of the Petroleum Exporting Countries that counts 13 states amongst which Angola or Nigeria is gradually loosening the output cuts it implemented when demand collapsed in 2020.

Amounting to 40% of world crude oil production, the organization has the means to affect the price if member countries agree on stimulating their production, according to analyst Hussein Sayed.

However not all smaller producers can increase supply and others are cautious, refusing to pump too much oil in case of renewed COVID-19 setbacks. Geopolitics also play a role. Supplies were hampered by disruptions in Libya or fears of a military invasion of Ukraine.

In 2019, oild rents represented 7.4% of Nigeria's GDP, the leading oil producer on the continent.