Friday, July 12, 2024

Angola quits OPEC over production quotas

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Elvis Adjetey
Elvis Adjetey
Elvis Adjetey is an experienced African journalist who has worked with top media brands in Ghana where he is based.

Angola has announced that is leaving the OPEC oil producers cartel, coming after it battled with the group over lower production quotas this year.

Disagreements over lower oil quotas for some African countries led to an usual delay to OPEC’s November meeting, where the group led by Russia, decide how much oil to send to the world.

At the meeting, Angola’s production level was dropped to 1.11 million barrels per month after an assessment.

Angolan oil minister Diamantino de Azevedo said Angola “does not gain anything by remaining in the organization,” according to state news agency Angop.

Angola joined OPEC in 2007.

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OPEC, led by Saudi Arabia, has been trying to bolster oil prices that have fallen in recent months over concerns about too much crude circulating in a weakening global economy, which could weigh on the thirst for oil for travel and industry.

The lower prices have been a good thing for U.S. drivers, who have been able to fill their gas tanks for less money in recent months but have hurt the bottom line of OPEC oil producers. The price of U.S. benchmark crude has fallen 8% this year.

Oil prices have gotten a boost in recent days as Yemen’s Houthi rebels have escalated attacks on ships in the Red Sea and companies have diverted vessels from traveling through the area, where huge amounts of the world’s energy supplies transit between the Middle East, Asia and Europe.

While losing Angola, OPEC announced at its meeting last month that it was bringing Brazil into the fold, a major oil producer that has been producing record amounts of crude this year, according to the International Energy Agency.

OPEC has not responded to the decision of Angola.

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