Luanda, 23 December 2023(TDI): On Thursday, Angola announced its decision to leave the OPEC, Organization of the Petroleum Exporting Countries, due to a disagreement regarding oil production quotas.
This move has been followed by the recent decision of the oil cartel to further reduce output in the next year.
Angola’s decision to withdraw from the OPEC will bring the group down to 12 members now. Diamantino Azevedo, the Minister for Mineral Resources, Petroleum, and Gas held a briefing on television on Thursday.
In his briefing, he expressed that Angola, a member country producing approximately 1.1 million barrels of oil per day, has decided to exit OPEC.
Azevedo mentioned that the decision to withdraw from the organization is rooted in the belief that continuing to remain in the organization no longer serves Angola’s interests. A statement from the president’s office quoting him, stating, “We feel that Angola gains nothing in the current time by remaining in the organization and, in safeguarding of her interests, decided to leave.”
The conclusion of Angola’s membership will result in OPEC countries collectively producing around 27 million barrels of oil per day. This oil production constitutes approximately 27 percent of the global oil supply. Although Angola held a relatively small share of oil production within the organization, her decision to withdraw from the OPEC has raised serious concerns regarding the organization’s future.
With oil and gas accounting for about 90 percent of Angola’s exports, they serve as a vital economic pillar for the country. In the previous month, Azevedo’s office objected to an OPEC decision to decrease its production quota for 2024.
Furthermore, he expressed his serious concerns about potential adverse impacts on Angola’s capacity to increase its output.
Recent discussions within the group have revolved around inquiries regarding potential production cuts. These production cuts have staunchly been advocated by major oil producers like Saudi Arabia and caused Angola to leave the OPEC.
Moreover, OPEC and its allies in OPEC+ have concluded agreements to reduce production levels. Undoubtedly, the aim of this move is to increase oil prices which are currently down.