(CTN News) – Angola announced on Thursday that it will be withdrawing from the OPEC oil producers cartel. This decision comes after a series of disputes with the group regarding lower production quotas throughout the year.
Diamantino de Azevedo, the oil minister of Angola, stated that the country sees no benefit in remaining a part of the organization, as reported by the state news agency Angop.
Angola became a member of OPEC in 2007.
The disagreements over reduced oil quotas for certain African nations, including Angola, resulted in an unprecedented delay of several days for OPEC’s November meeting.
During this meeting, the group, along with Russia and other allied producers, determines the amount of oil to be supplied to the global market.
Following an evaluation conducted by three independent sources, Angola’s production level was reduced to 1.11 million barrels per month, as confirmed by the organization.
OPEC, under the leadership of Saudi Arabia, has been making efforts to strengthen oil prices, which have experienced a decline in recent months due to concerns about an oversupply of crude in a weakening global economy.
This decline in prices could potentially impact the demand for oil in the travel and industrial sectors.
Although the decrease in oil prices has benefited U.S. drivers, allowing them to fill their gas tanks at a lower cost, it has negatively affected the profits of OPEC oil producers. The price of U.S. benchmark crude has dropped by 8% this year.
In recent days, oil prices have received a boost due to increased attacks by Yemen’s Houthi rebels on ships in the Red Sea.
As a result, companies have diverted their vessels from traveling through this area, which serves as a crucial transit route for a significant portion of the world’s energy supplies between the Middle East, Asia, and Europe.
During its last meeting, OPEC announced the inclusion of Brazil into its ranks, compensating for the loss of Angola. Brazil, a major oil producer, has been experiencing a record-high production of crude this year, as reported by the International Energy Agency.