Angola Decides to Leave OPEC
Angola’s Disagreement with OPEC
Angola, a country in Africa, has announced that it will leave OPEC. This decision comes after a disagreement over production quotas. OPEC is an organization that controls the production and pricing of oil.
Why Angola is Leaving
The Minister of Mineral Resources and Petroleum, Diamantino Azevedo, explained that Angola made this decision because being a part of OPEC no longer benefits the country. Angola believes that they should focus more on their own goals.
Angola is unhappy with OPEC’s recent decision to further reduce oil production next year. This decision was made to try and stabilize oil prices, but Angola did not agree with it.
If Angola stayed in OPEC, they would be forced to cut their oil production. This goes against Angola’s policy of avoiding decline and respecting contracts.
Angola’s Importance in Oil Exporting
Angola is one of the largest oil exporters in Sub-Saharan Africa, along with Nigeria. Both countries expressed dissatisfaction with their production quotas at the November OPEC meeting. They want to increase their production to earn more foreign currency.
The November OPEC meeting had to be postponed because of disagreements between Angola, Nigeria, and other member countries.
Current Oil Prices
Oil prices are currently at their lowest level in almost six months, despite OPEC’s announcement to cut production. However, prices have recently increased due to concerns about drone and missile attacks in the Red Sea and Suez Canal.
Even with the recent increase, oil prices are still below $80 per barrel.
Angola’s decision to leave OPEC shows that countries have different priorities and interests when it comes to oil production and pricing.
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