Angola Clarifies Reasons for Exiting OPEC

Angola has officially announced its departure from the Organization of the Petroleum Exporting Countries (OPEC) on Thursday. The African oil-producing nation attributes its exit to the ongoing protracted dispute within the cartel concerning output quotas, asserting that OPEC no longer serves its best interests.

This decision comes in the wake of the recent resolution by the 13-member OPEC and ten allied nations to implement further cuts in oil production throughout 2024, aimed at stabilizing the unpredictable global oil prices.

Angola, responsible for a daily production of approximately 1.1 million barrels, holds a notable share within OPEC, which collectively produces 30 million barrels per day. The repercussions of Angola’s exit were swiftly felt in the market, as oil prices experienced a decline. Brent prices, in particular, dropped by over $1 to $78.5 a barrel by 12:50 GMT on Thursday.

The formal announcement of Angola’s withdrawal was made during Thursday’s cabinet meeting. Diamantino Azevedo, the Minister of Mineral Resources and Petroleum, clarified the rationale behind this strategic move. Azevedo emphasized that Angola’s decision to leave the Saudi Arabia-led OPEC stems from the belief that continued membership no longer aligns with the nation’s interests.

Azevedo stated, “We feel that at this moment, Angola gains nothing by remaining in the organization and, in defense of its interests, it decided to leave. If we remained in OPEC… Angola would be forced to cut production, which goes against our policy of avoiding decline and respecting contracts.”

With a membership spanning 16 years, Angola now joins the ranks of Ecuador, Indonesia, and Qatar, which have previously exited the cartel. OPEC, a coalition of oil-producing nations, including Nigeria, holds the responsibility of determining global crude oil sales alongside the broader consortium known as OPEC+.