Angola made a decisive announcement on Thursday, stating its intention to exit OPEC due to a contentious disagreement regarding production quotas following the oil cartel’s recent decision to further reduce output in the upcoming year.
Diamantino Azevedo, Angola’s Mineral Resources and Petroleum minister, expressed that the decision to depart from OPEC was a carefully considered one, emphasizing that the country’s interests were no longer aligned with OPEC membership.
Azevedo highlighted Angola’s dissatisfaction with OPEC’s resolution last month, citing concerns over the decision to reduce production, which conflicted with Angola’s policies aimed at avoiding production decline and honoring existing contracts.
As one of the significant oil exporters in Sub-Saharan Africa alongside Nigeria, Angola conveyed its discontentment with the production quotas during the November OPEC ministerial meeting. Both nations sought to increase production to secure crucial foreign currency, causing delays in the meeting due to unresolved disagreements.
Despite OPEC’s announcement to cut output in November, oil prices have lingered near their lowest levels in nearly half a year. Recent escalations in prices occurred following announcements by cargo shippers and oil firms to avoid utilizing the Red Sea and Suez Canal due to drone and missile attacks by Huthi rebels, yet prices remain below $80 a barrel.
Despite efforts by the OPEC+ alliance to stabilize prices, implemented cuts totaling more than five million barrels per day since the conclusion of 2022, have not significantly bolstered prices.
Established in 1960, the 13-member OPEC later formed the OPEC+ alliance in 2016, partnering with an additional 10 producers to enhance collective influence in the global oil market.
