Angola says budget reference oil price prudent: report

LUANDA (Reuters) - Angola's $58 per barrel reference oil price in the 2010 budget is very prudent as oil prices should trade much higher next year, and the government will use the extra money for a wealth fund, a weekly newspaper reported.

O Pais newspaper quoted Economy Minister Manuel Nunes Junior as saying he expected oil prices next year to trade at around $75 per barrel.

"The reference oil price of $58 per barrel remains very prudent," Nunes Junior said. "Next year there should be an ascending movement in oil prices, some people say oil prices should stay at around $75 per barrel."

The reference oil price in the budget is an estimate that allows the government to project the revenues it expects from Angola's oil exports.

Nunes Junior said Angola would inject the extra oil money for a sovereign wealth fund it plans to set up this year.

Parliament is expected to approve Angola's 2010 budget in the next few weeks, increasing spending by a massive 50 percent on the year to 3.9 trillion Angola kwanzas ($45.8 billion) on the back of changes in world oil prices.

Nunes Junior said revenue should reach around $30 billion.

Angola is comfortable with its foreign exchange reserves, which rose to $12.8 billion in September from $12.6 billion in the previous month, and guarantees at least three months worth of imports, he added.

The African nation rivals Nigeria as the continent's biggest oil producer and is dependent on oil for almost 90 percent of its income from exports.

(Reporting by Henrique Almeida)