Breaking: Angola Announces Abdication From OPEC

Afimag.com –

Angola government, on December 21, 2023, disclosed its decision to abdicate her membership from the Organization of the Petroleum Exporting Countries, OPEC.

The country expressed its displeasure over OPEC’s administrative policies attributing it to the force behind her resignation.

The Oil Minister Diamantino Azevedo, stated that OPEC membership was no longer serving Angola’s best interests, but declined to elaborate further.

According to Leadership, Angola’s discontent with OPEC stems from recent disagreements over production quotas. Last month, the country protested a proposed output cut for 2024, deeming it unfair and detrimental to its own economic goals. This simmering tension added to existing frustration among some African members regarding their representation and influence within the cartel.

Angola’s exit from OPEC throws the organization’s future into uncertainty. With a smaller membership and potential internal fissures, OPEC’s ability to effectively control oil production and stabilize prices could be undermined. This raises concerns about increased market volatility and potential oil price spikes in the coming months.

Industry experts are voicing mixed reactions to Angola’s decision. Some see it as a bold move for the country to assert its independence and pursue its own oil production strategies. Others express concern about the potential for decreased cooperation and increased competition within the global oil market.

Despite leaving OPEC, Angola remains a major oil producer, the second-largest in Africa. The country’s future oil strategy remains unclear, with speculation mounting about potential independent production plans or partnerships with other non-OPEC nations.

The global oil market will be closely watching Angola’s next steps and the long-term ramifications of its exit from OPEC. This unexpected development has the potential to reshape the dynamics of the oil industry and impact energy prices for years to come.