Angola has announced its decision to withdraw from the Organization of the Petroleum Exporting Countries (OPEC) due to disagreements over production quotas, News About Nigeria reports.
The move comes in response to OPEC’s recent decision to further reduce oil output in the coming year.
Mineral Resources and Petroleum Minister Diamantino Azevedo said on Thursday, “Angola has decided to leave. We think the time has come for our country to be more focused on our goals.”
The disagreement primarily revolves around Angola’s reluctance to comply with additional production cuts agreed upon by OPEC and its allies, including Russia.
Following the announcement, crude oil prices experienced a decline, with the main international and U.S. crude contracts dropping over 1.5%.
The decision by Angola to exit OPEC is seen as a response to the ongoing efforts by the oil cartel to stabilise prices through production adjustments.
The OPEC+ alliance has implemented supply cuts exceeding five million barrels per day since the end of 2022 in an attempt to support oil prices.
However, global economic concerns and increased oil production by countries like the United States, Brazil, and Guyana have kept prices under pressure.
While Angola is a relatively small producer, contributing around 1.1 million barrels per day, its departure adds to the challenges faced by OPEC as it strives to convince members to voluntarily reduce production to bolster prices.
Analysts note that the timing of Angola’s exit is unfavourable for OPEC’s efforts to maintain price stability.
Simultaneously, on Wall Street, the three main indices rebounded after a previous decline, indicating a recovery from the profit-taking that affected trading floors the day before.
The Dow’s streak of five consecutive record closes was broken on Wednesday.
