Angola To Quit OPEC Membership Over Oil Quota
Angola on Thursday announced that it would quit membership from the Organisation for Petroleum Exporting Countries over a disagreement on production quotas.
The decision is coming on the heels of the oil cartel’s decision last month to further slash output next year, according to an AFP report today.
“Angola has decided to leave. We think the time has come for our country to be more focused on our goals,” Mineral Resources and Petroleum Minister Diamantino Azevedo told state broadcaster TPA.
He said Luanda was unhappy with the group’s decision last month to further slash production next year in an effort to prop up volatile prices.
“If we remained in OPEC … Angola would be forced to cut production and this goes against our policy of avoiding decline and respecting contracts,” Azevedo said.
Osun Defender reports that Angola is one of the largest oil exporters in Sub-Saharan Africa, alongside Nigeria.
Both countries expressed dissatisfaction with their production quotas at the November OPEC ministerial meeting as they seek to step up production to secure vital foreign currency.
The meeting had to be postponed for several days because of disagreements.
Prices are sitting near their lowest level in nearly six months despite the cartel’s announcement in November to further cut output.
They have jumped in recent days as cargo shippers and oil firms say they will avoid using the Red Sea and Suez Canal because of drone and missile attacks by Huthi rebels. But they still remain below $80 a barrel.
Nevertheless, crude prices remain above the average of the past five years.
In an effort to prop up prices, the OPEC+ alliance has implemented supply cuts of more than five million barrels per day (bpd) since the end of 2022.
Founded in 1960, the 13-member OPEC cartel in 2016 partnered up with 10 other producers to form OPEC+ to gain more clout.
Sodiq Lawal is a passionate and dedicated journalist with a knack for uncovering captivating stories in the bustling metropolis of Osun State and Nigeria at large. He has a versatile reporting style, covering a wide range of topics, from politics , campus, and social issues to arts and culture, seeking impact in all facets of the society.
