Crude oil flies to $86bpd over Gabon coup concerns

The coup in Gabon has fueled a modest increase in the prices of crude oil due to threats to the country’s 200,000 barrels per day (bpd) of crude oil exports.  Gabon is the second-smallest OPEC producer. Earlier on August 30, a cohort of senior military officers declared that they had assumed control following the announcement by the state election body that President Ali Bongo had secured a third term. Bongo’s father Omar had ruled as president for 42 years. According to a report by Wall Street Journal, since Gabon’s coup announcement, global crude oil prices have seen a modest increase due to seeming threats to exports from the country. “The coup and the threat of disruptions to Gabon’s oil exports are supporting oil prices, but only modestly as the nation is a minor OPEC oil producer, DNB Markets analyst Helge Andre Martinsen says. Brent crude oil is up 0.3 per cent at $85.19 a barrel. “The nation’s output stands at a modest 190,000 barrels a day, but it has been the only African OPEC member to hit its production quotas. So far, there has been no sign of disruption to Gabon’s oil output. Still, the coup serves as a reminder of the geopolitical risk in the oil market, Martinsen says.” It is important to note that as of 12:50 PM (GMT+1) on Wednesday, August 30, Brent crude price was at $86 per barrel. The Gabon coup is raising supply concerns alongside Hurricane Idalia in the United States, which has raised oil supply concerns as well. Meanwhile, on Wednesday, Amena Bakr, OPEC’s chief correspondent posted on Twitter that so far, it appears that oil production from fields in Gabon is not affected by the military coup. Similarly, Assala Energy, which is wholly owned by Carlyle Group (CG.O), said its oil production in Gabon has been unaffected by the military coup in the country. “We can confirm that all our personnel are safe, our operations continue as usual and our production is not affected,” a company spokesperson said. The private equity fund’s non-U.S. energy arm first invested in Assala in 2017 when it acquired Shell’s (SHELL) ageing operations in Gabon for $628 million. However, earlier this month, Carlyle agreed to sell Assala to French producer Maurel & Prom which owns and operates oil and gas assets in Africa, Europe and Latin America, including three licences in Gabon, for $730 million.

Coup in Gabon as Army sacks Ali Bongo over disputed election

*Military generals nullify controversial election results Another coup has happened in Africa after a faction of high-ranking military officials in Gabon took to national television to assert their control, asserting that the recent general election’s legitimacy is questionable. They maintain that they represent the collective security and defense forces of Gabon. In a televised address, the officers proclaimed the nullification of the election outcomes, immediate closure of national borders, and the dissolution of state institutions. The capital city, Libreville, resonated with the echoes of gunshots, as reported by a correspondent from Reuters, right after the televised message was broadcasted. Efforts to reach the government for a response were unsuccessful at the time of reporting. The incumbent leader of Gabon, President Ali Bongo, secured a third term in office through the presidential election, garnering 64.27% of the total votes, according to the Gabonese election centre’s announcement on Wednesday. The general election had been marred by delays, fueling allegations of fraud from the opposition. The Bongo family’s lengthy 53-year reign over Gabon could potentially be terminated if this power shift takes effect. Presenting the results during the early hours, Michel Stephane Bonda, the head of the election committee, disclosed that Albert Ondo Ossa, Bongo’s primary rival, emerged in second place with 30.77% of the votes. Bongo’s team promptly dismissed Ondo Ossa’s claims of electoral improprieties. Tensions had already escalated in the lead-up to the presidential, parliamentary, and legislative elections held on Saturday. While Bongo aimed to prolong his family’s 56-year dominion over Gabon, opposition forces pressed for transformative change in the resource-rich yet economically challenged Central African nation. Apprehensions had escalated due to the absence of international observers, the suspension of foreign broadcasts, and the government’s imposition of internet blackouts and a nationwide curfew following the polls. These actions have raised doubts about the transparency and fairness of the electoral process.