In a surprising twist, Angola has announced its immediate withdrawal from the Organization of the Petroleum Exporting Countries (OPEC), disrupting the oil cartel’s strategies and causing ripples across the world markets.
Having been a member of OPEC since 2007, Angola attributed its decision to dissatisfaction with the organization’s policies. Oil Minister Diamantino Azevedo, addressing the nation on live television, declared that OPEC membership was no longer in Angola’s best interests, though he refrained from providing further details, according to Reuters.
The announcement triggered a rapid decline in oil prices, with Brent crude plummeting by over $1 to $78.50 per barrel within minutes. This sharp drop reflects investor concerns regarding potential instability within OPEC and its ability to regulate global oil production in the future.
Angola’s discontent primarily stems from recent disagreements over production quotas. Last month, the country opposed a proposed output cut for 2024, viewing it as unfair and detrimental to its economic objectives. This tension compounded existing frustrations among some African members concerning their representation and influence within the cartel.
Angola’s departure injects uncertainty into OPEC’s future. With a reduced membership and potential internal divisions, OPEC’s capacity to control oil production and stabilize prices may face challenges. This raises worries about heightened market volatility and potential spikes in oil prices in the months ahead.
Industry experts have varied opinions on Angola’s move. Some view it as a bold step for the country to assert its independence and pursue unique oil production strategies. However, others express concerns about potential diminished cooperation and increased competition in the global oil market.
Despite leaving OPEC, Angola remains a significant oil producer, ranking as the second-largest in Africa. The country’s future oil strategy is uncertain, with speculation mounting about potential independent production plans or collaborations with other non-OPEC nations.
