ANGOLA, a member of the Organisation of the Petroleum Exporting Countries (OPEC) since 2007, has decided to withdraw from the organisation, stating that OPEC membership is not serving its national interests, according to the country’s oil minister, Diamantino Azevedo.
With an oil production capacity of nearly 1.1 million barrels per day, Angola’s departure from OPEC comes at a time when the organisation is striving to navigate the challenges of global oil dynamics. The entire OPEC group, comprising 28 million barrels per day, now faces a setback as Angola asserts its decision to discontinue its OPEC membership.
Confirming earlier reports from the local news agency ANGOP on Thursday, Azevedo clarified in a statement to state television that the decision was rooted in the belief that OPEC membership no longer aligns with Angola’s strategic interests. However, he did not elaborate on the specific details driving this divergence.
The news of Angola’s withdrawal had an immediate impact on oil prices, with Brent prices falling over $1 to $78.50 a barrel by 1250 GMT on Thursday. This decline reflects the uncertainty surrounding OPEC’s ability to stabilise global oil prices, particularly as it urges member countries to implement output cuts.
Angola’s exit from OPEC has wider implications for the organisation’s ongoing efforts to manage oil production quotas. Last month, Azevedo’s office protested OPEC’s decision to reduce its production quota for 2024, signalling discontent with the assigned target. Angola’s OPEC Governor, Estevao Pedro, was quoted by Bloomberg expressing dissatisfaction with the 2024 target and indicating a lack of intention to adhere to it.
Disagreements over African output quotas had previously caused delays in a meeting of the broader OPEC+ oil producer group. The developments underscore the complex dynamics within OPEC as member countries navigate divergent interests and seek to stabilise the volatile global oil market.