On Thursday Angola said that it was leaving the Organization of the Petroleum Exporting Countries (OPEC). The oil minister said that being part of OPEC was no longer in the interests of Angola. International oil prices fell by about 2.4 percent after the Thursday announcement by the country as analysts said that the move to leave the Saudi-led consortium brought into focus the unity of OPEC and OPEC+.
Angola’s Oil Minister Diamantino Pedro Azevedo said in a statement, “We feel that…Angola currently gains nothing by remaining in the organization and, in defense of its interests, decided to leave.”
A recent decision by OPEC+ to cut Angola’s output quota for 2024 was not well received by the African nation and it had protested against it. OPEC+ is planning to implement a new round of oil output cuts at the beginning of next year to strengthen the market.
Some OPEC delegates said that they were surprised at the African country’s decision to leave OPEC. They spoke on conditions of anonymity and said that they had expected the quota issue to blow over.
Angola joined OPEC in 2007. The whole group produces 28 million barrels per day (bpd), while the African country produces roughly 1.1 million bpd. OPEC will have 12 members after the departure of Angola and will produce about 27 million bpd of crude oil. The world oil market is roughly 102 million bpd.
The Southern African nation was unable to reach its OPEC+ quota in recent years. It peaked at 2 million bpd in 2008 but output fell due to a lack of investment as well as no new developments of big oil fields. The country expects to maintain its current production in the following year.
Oil and gas form 90 percent of total exports from Angola. The pandemic and recent fall in global fuel prices have had a detrimental effect on the country’s economy and the government is trying to reduce its overreliance on oil and gas products.
Angola is not the only mid-sized oil producer to leave OPEC. Ecuador and Qatar have already left the consortium, years ago.
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