LUANDA/LONDON, Dec 21 (Reuters) – Angola said on Thursday it would leave OPEC in a blow to the Saudi-led oil producer group that has sought in recent months to rally support for further output cuts to prop up oil prices.
Angola’s oil minister Diamantino Azevedo said the Organization of the Petroleum Exporting Countries no longer served the country’s interests. It joins other mid-sized producers Ecuador and Qatar, which have left OPEC in the last decade.
“We feel that … Angola currently gains nothing by remaining in the organization and, in defense of its interests, decided to leave,” Azevedo was quoted as saying in a presidency statement.
Oil prices fell by nearly 2% as analysts said the departure raised questions about OPEC’s unity.
“Prices fell on concern of the unity of OPEC+ as a group, but there is no indication that more heavyweights within the alliance intend to follow the path of Angola,” UBS analyst Giovanni Staunovo said
Angola, which joined OPEC in 2007, produces about 1.1 million barrels of oil per day, compared with 28 million bpd for the whole group.
OPEC did not immediately reply to a request for comment.
Three delegates from the group who spoke on condition of anonymity said Angola’s decision to leave came a surprise.
The country has been unable to produce enough oil to meet its OPEC quota since 2019.
It has struggled to reverse falling output since hitting a peak of 2 million bpd in 2008 and expects to maintain current production into 2024, a senior government official said in October.
Last month, Azevedo’s office protested against a decision by OPEC to cut its production quota for 2024, which could have curtailed any ability it might have to increase output.
Disagreements over African output quotas had earlier been in part the cause of a delay to a meeting of the wider OPEC+ oil producer group.
Oil and gas exports are Angola’s economic lifeblood, accounting for around 90% of total exports, an over-reliance the government has been seeking to reduce after it was hit hard by the COVID-19 pandemic and lower global fuel prices.
Several oil majors and independents operate in the southern African nation, including TotalEnergies, Chevron, ExxonMobil and Azule Energy, a 50/50 venture between Eni and BP.
(Reporting by Miguel Gomes in Luanda, Ahmad Ghaddar, Alex Lawler and Natalie Grover in London, Wendell Roelf in Cape Town; writing by Bhargav Acharya and Nellie Peyton; Editing by Alexander Winning, Jason Neely, Catherine Evans and Barbara Lewis)
(c) Copyright Thomson Reuters 2023.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 109,785 members that receive our newsletter.
Have a news tip? Let us know.
Spot rates for hauling crude on the largest vessels from the Middle East to China, a benchmark route, have sunk by a third this year as demand in the top importer slows and OPEC+ delays the restart of idled supply.
Russian Oil major Rosneft has delayed the commissioning of the Vostok Oil project until 2026, in part due to a shortage of ice-capable oil tankers as a result of Western sanctions. Earlier this year the U.S. announced sanctions aimed at slowing down or halting the construction and logistics operations of the project.
Russia's state oil firm Rosneft has agreed to supply nearly 500,000 barrels per day (bpd) of crude to Indian private refiner Reliance in the biggest ever energy deal between the two countries, three sources familiar with the deal said.
Maritime and offshore news trusted by our 109,785 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
