Angola exits OPEC over reduced production quotas

Angola declared its exit from the OPEC oil producers cartel on Thursday, because of disagreements over reduced production quotas that surfaced earlier this year. Angola’s oil minister, Diamantino de Azevedo said that the country “does not gain anything by remaining in the organization,” as reported by the state news agency Angop. Angola had been a member of OPEC since 2007.

The rift over reduced oil quotas for certain African nations, including Angola, led to an unusual delay in OPEC’s November meeting, where the group, in conjunction with Russia-led allied producers, determines global oil production levels. During the meeting, Angola’s production quota was adjusted to 1.11 million barrels per month following an evaluation by three independent sources, according to the organization.

OPEC, led by Saudi Arabia, has been striving to stabilize oil prices that have declined due to concerns about oversupply amid a weakening global economy, raising fears about reduced oil demand for travel and industry. Although lower oil prices have benefited U.S. consumers at the gas pump, they have negatively impacted the revenue of OPEC oil producers. The price of U.S. benchmark crude has dropped by 8% this year.

Recent escalations of attacks by Yemen’s Houthi rebels on ships in the Red Sea have contributed to a recent uptick in oil prices. Additionally, OPEC expanded its membership last month by welcoming Brazil, a significant oil producer that has been achieving record-high crude production levels in 2023, as reported by the International Energy Agency.