Angola said on Thursday it would quit OPEC over a dispute over production quotas after the oil cartel decided last month to cut output further next year.
Mineral Resources and Petroleum Minister Diamantino Azevedo said the decision was not taken lightly, but joining OPEC no longer served the African country’s interests.
“We feel that at this time Angola does not gain anything by remaining in the organization and, in order to defend its interests, has decided to withdraw,” the presidency said in a statement from Azevedo.
The presidency said the decision was taken at a cabinet meeting chaired by President Joao Lourenco in the capital Luanda.
After the meeting, Lourenco signed a decree to formalize the matter, it said.
Azevedo told state broadcaster TPA that Angola is unhappy with OPEC’s decision last month to cut output further next year in a bid to support volatile prices.
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“We believe the time has come for our country to focus more on our goals,” he told state broadcaster TPA.
“If we stayed in OPEC … Angola would be forced to cut production and that goes against our policy of avoiding a drop and respecting contracts.”
Angola is one of the largest oil exporters in Sub-Saharan Africa, along with Nigeria.
Both countries voiced their displeasure over their production quotas at the OPEC ministerial meeting in November as they seek to increase production to secure vital foreign currency.
The meeting was postponed for several days due to disagreements.
“When we see that we are in organizations and our contributions, our ideas, have no effect, the best thing is to withdraw,” Azevedo said.
Crude prices are near six-month lows, despite the cartel’s November announcement of further output cuts.
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They have soared in recent days as cargo shippers and oil companies say they will avoid using the Red Sea and the Suez Canal because of drone and missile attacks by Houthi rebels. But they still remain below 80 dollars a barrel.
However, crude prices remain above their five-year average.
In an effort to support prices, the OPEC+ alliance has implemented supply cuts of more than five million barrels per day (bpd) from the end of 2022.
Founded in 1960, the 13-member OPEC cartel in 2016 joined with 10 other producers to form OPEC+ to gain more influence.
Disagreement among members has added to the challenges facing the OPEC+ group, which is already grappling with rising U.S. crude production and the impending transition away from fossil fuels.
Source: AFP