Angola made a significant announcement on Thursday, revealing its decision to withdraw from the Organization of the Petroleum Exporting Countries (OPEC). The African oil-producing country declared that its exit from the esteemed organization was due to the belief that OPEC no longer served its best interests amid a prolonged dispute regarding output quotas.
This bold move by the African oil giant follows the recent decision by OPEC and ten allied nations to further reduce oil production in 2024 in an effort to stabilize the fluctuating global prices. With Angola currently responsible for producing approximately 1.1 million barrels of oil per day, out of the total 30 million from OPEC, the impact of this decision reverberates globally.
In response to this development, the oil market experienced a noticeable shift, witnessing a decline in oil prices. Brent prices plummeted by over $1 to $78.5 a barrel as of 12:50 GMT on Thursday, reflecting the market’s reaction to Angola’s departure from OPEC.
Angola’s definitive choice to withdraw from OPEC was formally declared during the cabinet meeting on Thursday. Diamantino Azevedo, the Minister of Mineral Resources and Petroleum, articulated Angola’s rationale, stating that the decision was made as OPEC no longer aligned with the interests of the African nation.
Azevedo emphasized, “We feel that at this moment, Angola gains nothing by remaining in the organization and, in defense of its interests, it decided to leave. If we remained in OPEC… Angola would be forced to cut production, which goes against our policy of avoiding decline and respecting contracts.”
Having been a member of OPEC for 16 years, Angola’s departure now joins the ranks of Ecuador, Indonesia, and Qatar, countries that have also exited the cartel. OPEC, an influential group of oil producers that includes Nigeria, determines the quantity of crude oil to be supplied to the global market and operates alongside an extended coalition known as OPEC+.
With Angola’s decision to step away from OPEC, the global oil landscape stands to undergo transformative shifts, and the repercussions of this departure are poised to resonate across international markets as OPEC navigates a new era of production considerations and a redefined membership landscape.
