February 24, 2024
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OIL & GAS RENEWABLE ENERGY Uncategorized

Angola to Leave OPEC Over Production Quota Dispute

Angola has announced its decision to exit the Organization of the Petroleum Exporting Countries (OPEC) due to disagreements over production quotas. Diamantino Azevedo, the minister for mineral resources, petroleum, and gas, cited that remaining in the organization did not serve Angola’s interests, according to Reuters.

Azevedo stated on public television that Angola, producing approximately 1.1 million barrels of oil daily, gains nothing from OPEC’s current framework. This move reduces OPEC’s membership to 12 countries.

Joining other nations like Qatar and Ecuador, Angola’s departure raises questions about OPEC’s future. While Angola’s oil production was relatively small, concerns about the unity of OPEC+ led to a more than 1.5 percent drop in crude prices.

Oil and gas constitute about 90 percent of Angola’s exports, making them vital for the country’s economy. Last month, Angola protested against OPEC’s decision to reduce its production quota for 2024, fearing it would hamper the country’s ability to increase output capacity.

Despite the minimal impact on global oil supply, as Angola’s production was already declining, the announcement sparked concerns about OPEC+ unity. There is, however, no indication that other major players within the alliance plan to follow Angola’s path.

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