Angola has formally announced its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC), citing a misalignment of interests within the cartel, particularly amid ongoing disagreements over output quotas. The decision was disclosed during Thursday’s cabinet meeting and comes on the heels of OPEC’s recent agreement to further reduce oil production in 2024, a move intended to stabilize global prices.
Angola, a key African oil producer, currently contributes approximately 1.1 million barrels daily out of OPEC’s total production of 30 million barrels. The nation’s decision to exit the 13-member cartel and ten allied nations had an immediate impact on the market, triggering a decline in oil prices. Brent prices, in particular, fell over $1 to $78.5 a barrel by 12:50 GMT on Thursday.
Minister of Mineral Resources and Petroleum, Diamantino Azevedo, explained Angola’s rationale behind the departure, stating, “We feel that at this moment, Angola gains nothing by remaining in the organization and, in defense of its interests, it decided to leave.” Azevedo highlighted concerns that continued OPEC membership would require Angola to cut production, a move contrary to the nation’s policy of avoiding decline and respecting existing contracts.
Angola, which has been a member of OPEC for 16 years, now joins the ranks of Ecuador, Indonesia, and Qatar, all of whom have previously exited the cartel. Azevedo’s announcement underscores the growing complexity within OPEC, where member nations grapple with divergent interests and the challenge of reaching a consensus on production levels.
OPEC, originally established as a group of oil producers, including Nigeria, that collectively determined global crude oil sales, has expanded into a larger coalition known as OPEC+. Angola’s departure marks another chapter in the evolving dynamics of this influential organization as it navigates the complexities of the global energy landscape.