Angola’s Exit from OPEC: In a significant development, Angola has decided to part ways with the Organization of the Petroleum Exporting Countries (OPEC) due to disagreements over production quotas. The country, producing approximately 1.1 million barrels of oil daily, cites a lack of benefits from OPEC membership. This move reduces OPEC’s membership to 12 nations.
Minister Diamantino Azevedo emphasized that remaining in the organization does not serve Angola’s interests. The departure raises questions about the future of OPEC, as Angola joins the ranks of Qatar and Ecuador, who left in the past decade. While Angola’s contribution is relatively small, concerns about OPEC+ unity impacted global oil prices, causing a 1.5% drop.
With Angola’s departure, OPEC countries will collectively produce around 27 million barrels per day, constituting approximately 27% of global supply. Despite the minimal impact on the oil market supply, the move raises uncertainties about OPEC’s cohesiveness. Analysts suggest that, although oil production in Angola was declining, the concern lies in potential future rifts within the alliance.
Oil and gas constitute about 90% of Angola’s exports, making them crucial for the nation’s economy. The recent disagreement arose when OPEC decided to reduce its production quota for 2024, prompting concerns about Angola’s ability to boost output capacity. As OPEC and OPEC+ continue to navigate production cuts to stabilize oil prices, Angola’s exit marks a pivotal moment, leaving observers to contemplate the organization’s trajectory in the evolving global energy landscape.
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