Angola withdraws from OPEC due to the plan to reduce oil production

Angola withdraws from OPEC due to the plan to reduce oil production

On Thursday, the Angolan government declared its intention to withdraw from OPEC. The reason behind this decision is the organization’s production reduction plan, which has been in place for several months and recently extended until the first quarter of next year.

Angola’s Oil Minister, Diamantino Azevedo, recently announced that his country will withdraw from the Organization of the Petroleum Exporting Countries (OPEC). The decision was made because Angola believes that its membership does not serve its interests. However, no further details were given about why this decision was made. This information was reported by the “CNBC Arabia” network, which specializes in economic affairs.

Angola, which became an OPEC member in 2007, produces only about 1.1 million barrels of oil per day, while the entire group produces 28 million barrels.

At 12:50 GMT, the price of Brent dropped by over a dollar to $78.50 a barrel due to recent news, leading to continued losses in oil prices.

Angola’s departure from OPEC is a blow to the group’s efforts to support prices by reducing production.

Last month, Angola’s OPEC governor, Estevao Pedro, protested OPEC’s decision to reduce its production quota for 2024 and said that his country is not satisfied with its 2024 target and does not plan to adhere to it.

During the ministerial meeting last November, Nigeria and Angola had previously expressed their dissatisfaction with the reduction in their share of production. The meeting was postponed for days due to disagreements between member states.