Angola to exit OPEC over quota row

Oil producing country, Angola, a key member of the Organization of the Petroleum Exporting Countries (OPEC) since 2007, has declared its intention to leave the organization following a cut in its production quota.

The decision was confirmed by Angola’s Oil Minister Diamantino Azevedo on the heels of a prolonged period of dissatisfaction with OPEC’s production quotas.

Minister Azevedo, in his statement, emphasized the lack of alignment between Angola’s aspirations and the benefits derived from OPEC membership.

“As a country, when we participate, it is to contribute, expecting results that align with our interests,” Azevedo stated. “When this doesn’t occur, we become redundant, and it no longer makes sense for us to remain in the organization.”

Despite efforts, including a review by external consultants, the disagreements reached a tipping point when OPEC imposed a lower quota of 1.1 million barrels a day in its latest meeting, a figure below Angola’s current output.

Angola’s exit from OPEC is not just a national decision but a significant setback for the organization, which has been striving to maintain a delicate balance in oil production to support prices.

READ ALSO: 2024 budget threatened as OPEC+ cuts Nigeria’s crude oil output

Angola’s departure, following the earlier exits of countries like Qatar, Indonesia, and Ecuador, highlights the growing challenges within OPEC in managing member countries’ diverse economic and production capacities.

OPEC is yet to respond officially to Angola’s decision to withdraw.

Angola, producing approximately 1.1 million barrels of oil per day, has been grappling with a production target set by OPEC that the country considers restrictive and not reflective of its capabilities and economic needs.

The rift between Angola and OPEC’s leadership had been simmering for some time. It escalated last summer when Angola was asked to accept a reduced production target for 2024, acknowledging the nation’s declining production capacity.

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