… triggers crude price decline
Oredola Adeola with agency reports
Angola, the second largest oil producer in Africa after Nigeria, has announced its departure from the Organization of the Petroleum Exporting Countries (OPEC), the country’s news agency Angop reported.
EnergyDay gathered that the announcement was conveyed by Angolan oil minister Diamantino de Azevedo. on Thursday, following the 10th session of the council of ministers under Angolan President Joao Lourenco.
This development comes in the wake of OPEC, led by Saudi Arabia, reducing Angola’s oil output target for the upcoming year as part of a series of production cuts announced at the latest ministerial meeting.
This move by Angola reflects its response to the oil cartel’s decision to decrease the country’s oil output target for the following year.
In October 2023, Angola’s crude oil production was reported at 1,172,000 barrels per day (bpd), which was an increase from the previous month’s production of 1,121,000 bpd.
The country, as the second largest oil producer in Africa, expects to maintain its current crude oil production of 1.1 million bpd into 2024.
This places Angola behind Nigeria, the largest oil producer in Africa, with an oil production of 1,350,573 bpd.
EnergyDay’s finding showed that Angola’s departure from OPEC is expected to have implications for the global oil market.
However, the news of Angola’s exit from OPEC has already led to a bearish sentiment in the market, reflecting the significance of this development for the oil industry. It has caused a reversal in crude prices,
Analysts are closely monitoring the situation to assess its potential impact on oil prices and production dynamics but confirmed that the departure of an OPEC member, particularly one with a troubled production capacity trajectory like Angola, will be treated as a significant development impacting global oil dynamics.
This decision comes at a time when OPEC and its allies, including Russia, have been making efforts to stabilize oil prices through voluntary production cuts.
The addition of Brazil as a new member to OPEC has also been a recent development, further shaping the dynamics of the oil market.
EnergyDay recalled that Angola in November 2023 rejected the recent output quota handed to it by OPEC and declared its intention to breach it.
Angola’s OPEC Governor Estevao Pedro, last month stated that the country would produce above the quota determined by OPEC
Pedro emphasized that Angola’s position was not one of disobedience, but rather a presentation of their case, which he believed should be taken into consideration by OPEC.