Crack in OPEC as Angola quits over production quota row

The Organisation of Petroleum Exporting Countries (OPEC) on Thursday experienced a major crack with one of its members, Angola, announcing its exit from the oil cartel amid a production quota row.

Angola’s Minister of Oil, Diamantino de Azevedo, told the media on Thursday that the decision was made during a council of ministers’ session.

The council of ministers meeting was chaired by President João Lourenço.

“We feel that at the moment, Angola does not gain anything by remaining in the organization and, in defence of its interests, it has decided to leave”, Azevedo said.

Following the development, Brent crude dropped by 1.49 percent to $78.49 a barrel, while US West Texas Intermediate declined by 1.44 percent to $73.15 a barrel.

OPEC and its allies, known as OPEC+, had last month lowered Angola’s oil production target for 2024 to 1.11 million barrels per day (bpd).

Prior to the reduction, there was an agreement in June that Angola could produce 1.28 million bpd — pending assessments by consultancies.

Angola sent a note of protest to OPEC over the decision earlier this month.

Meanwhile, delegates at the OPEC meeting had blamed disagreements on Africa’s oil output for the postponement of the alliance’s last meeting on November 25-26, according to Bloomberg.

The meeting was later held on November 30, with OPEC saying Nigeria could achieve an oil production quota of 1.5 million barrels of crude oil per day (bpd) in 2024 and Angola 1.11 million bpd.

The meeting also welcomed the Minister of Mines and Energy of Brazil, Alexandre Silveira de Oliveira, ahead of the country’s admittance to OPEC+ charter of cooperation in January 2024.