Angola has decided to exit the Organization of the Petroleum Exporting Countries (OPEC), stating that the membership no longer aligns with the nation’s interests.
The announcement was made by Angola’s oil minister, Diamantino Azevedo, who emphasized that OPEC membership had ceased to serve the country’s best interests.
Angola, which became an OPEC member in 2007, currently produces approximately 1.1 million barrels of oil per day, a modest figure compared to OPEC’s overall daily production of 28 million barrels.
The decision to leave the organization raises questions about the future dynamics within OPEC and its efforts to stabilize global oil prices.
The news of Angola’s departure had an immediate impact on oil prices, with Brent prices dropping over $1 to $78.50 per barrel shortly after the announcement.
The move is considered a setback for OPEC and its allies as they grapple with challenges in coordinating production cuts to support oil prices.
Oil Minister Azevedo, in confirming the decision, did not provide specific details about the factors that led to Angola’s withdrawal.
However, last month, Angola expressed dissatisfaction with OPEC’s decision to reduce its production quota for 2024.
OPEC Governor Estevao Pedro stated that the country was unhappy with the assigned target and did not plan to adhere to it.
The departure of Angola from OPEC adds complexity to the ongoing negotiations within the organization, especially concerning production quotas and the delicate balance required to stabilize oil markets.
The move underscores the challenges faced by OPEC in maintaining cohesion among its diverse member countries with varying production capacities and economic priorities.
As Angola sets a new course outside OPEC, analysts are closely watching for further developments and the potential implications for global oil dynamics.
The decision by the African nation highlights the complex considerations that member countries must navigate in balancing individual interests with the collective objectives of the organization.