By John Ikani
The recent coup in Gabon has led to a slight uptick in crude oil prices, driven by concerns over potential disruptions in the country’s oil exports.
Gabon, which ranks as the second-smallest OPEC producer, contributes around 200,000 barrels per day (bpd) of crude oil to the global market.
A Wall Street Journal report notes that Market observers are keeping an eye on potential export disruptions from the country.
“Though modest, the coup’s impact on oil prices is notable, given Gabon’s role as a minor OPEC oil producer,” noted Helge Andre Martinsen, an analyst at DNB Markets.
Brent crude oil edged up by 0.3 percent, now reaching $85.19 per barrel.
With a daily output of around 190,000 barrels, Gabon’s contribution to oil production is relatively small.
However, it’s worth noting that the nation has been the sole African OPEC member meeting its production quotas.
While there’s no immediate evidence of oil output disturbance in Gabon, Martinsen underscored that the coup does underscore the geopolitical risks inherent in the oil market.
It’s essential to highlight that as of Wednesday, August 30, at 12:50 PM (GMT+1), Brent crude was valued at $86 per barrel.
The coup’s implications for oil supply are compounded by the ongoing concerns surrounding Hurricane Idalia in the United States, which has also brought about worries about oil supply.
In a recent Twitter post, Amena Bakr, OPEC’s chief correspondent, conveyed that, thus far, oil production in Gabon hasn’t been impacted by the military coup.
Likewise, Assala Energy, a company fully owned by Carlyle Group (CG.O), affirmed that its oil production operations in Gabon remain unaffected by the country’s political turmoil.
“We want to assure everyone that our operations are running smoothly, and there’s no disruption to our production,” stated a spokesperson from the company.
Carlyle Group’s non-U.S. energy division made its initial investment in Assala in 2017, securing Shell’s (SHEL.L) mature operations in Gabon for $628 million.
In a recent development, Carlyle Group agreed to sell Assala to French producer Maurel & Prom (MAUP.PA). Maurel & Prom owns and operates oil and gas assets across Africa, Europe, and Latin America, including three licenses in Gabon.
The transaction is valued at $730 million and was confirmed earlier this month.
