Angola Quits OPEC In Dispute Over Production Quota

Angola has announced it is leaving the oil producers’ organization OPEC over a dispute on output quotas.

It follows last month’s decision by the 13-member cartel and 10 allied nations to further slash oil production in 2024 to prop up volatile global prices.

Angola’s decision to withdraw from OPEC came at Thursday’s cabinet meeting.

Mineral Resources and Petroleum Minister Diamantino Azevedo said afterward that Angola feels that at this moment, it gains nothing by remaining in the organization and, in defense of its interests.

Angola and Nigeria, who are the two biggest oil exporters in sub-Saharan Africa, have been unhappy at being asked to cut production at a time when they need to increase their foreign currency earnings.

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Angola, which had been an OPEC member for 16 years, is not the first country to leave the cartel. Ecuador, Indonesia, and Qatar have all done the same.

OPEC is a grouping of oil producers that decide how much crude oil to sell on the world market, along with an expanded group called OPEC+.

As OPEC+ has struggled this year, Riyadh has put more pressure on smaller members to assist its efforts — such as Angola.

The country’s clash with OPEC’s leadership emerged in June, when a deal that awarded a higher production target to the United Arab Emirates forced Luanda to accept a reduced limit for 2024 that certified its fading abilities.