{"id":9203,"date":"2023-12-22T12:00:40","date_gmt":"2023-12-22T12:00:40","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=9203"},"modified":"2023-12-22T12:00:40","modified_gmt":"2023-12-22T12:00:40","slug":"angola-leaves-opec-in-blow-to-oil-producer-group","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/9203\/","title":{"rendered":"Angola leaves OPEC in blow to oil producer group"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Angola 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.<\/p>\n

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 that have left OPEC in the last decade.<\/p>\n

“We feel that … Angola currently gains nothing by remaining in the organisation and, in defense of its interests, decided to leave,” Azevedo was quoted as saying in a presidency statement.<\/p>\n

International oil prices dropped by as much as 2.4% on Thursday as analysts said the departure raised questions about the unity of OPEC and OPEC+, the wider group that includes Russia and other OPEC allies. OPEC+ implements a new round of oil-output cuts from January to try to strengthen the market.<\/p>\n

“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.<\/p>\n

Angola’s announced departure follows a protest from Angola about OPEC+’s decision to cut its output quota for 2024. The dispute helped to delay OPEC+’s last policy meeting in November and its agreement on new output curbs.<\/p>\n

“This shows that there is no consensus within OPEC itself and this was for some time now,” Ali Al-Riyami, former marketing director general at Oman’s energy ministry, said.<\/p>\n

“There will be consequences no doubt about it, but I don’t think others (countries) will follow.”<\/p>\n

Nigeria is another African OPEC member that has been trying to boost output and has been struggling to meet its quota. At the November meeting, it received a higher OPEC+ target for 2024, although lower than it had sought, restricting its ability to increase production should it be able to do so.<\/p>\n

OPEC did not reply to a request for comment.<\/p>\n

FALLING MARKET SHARE<\/h2>\n

Three OPEC delegates who spoke on condition of anonymity said Angola’s decision to leave came as a surprise, as they had expected the dispute over Angola’s quota to blow over.<\/p>\n

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.<\/p>\n

Angola’s departure will leave OPEC with 12 members and crude oil production of about 27 million bpd, some 27% of the 102 million bpd world oil market.<\/p>\n

This further reduces OPEC’s share of the world market, which stood at 34% in 2010.<\/p>\n

As well as the exit of some members, OPEC and OPEC+ decisions to cut production and the rising output of non-OPEC countries including the United States have reduced its market share.<\/p>\n

Brazil is expected to join OPEC+ in January but will not take part in the group’s coordinated output caps.<\/p>\n

Angola has been unable to produce enough oil to meet its OPEC+ quota in recent years, because of falling investment and a lack of big new oilfield developments.<\/p>\n

It has struggled to reverse falling output since a peak of 2 million bpd in 2008 and expects to maintain current production into 2024, a senior government official said in October.<\/p>\n

For Angola, oil and gas accounts for around 90% of total exports, an over-reliance the government has been seeking to reduce after the COVID-19 pandemic and lower global fuel prices hit the country’s economy hard.<\/p>\n

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.<\/p>\n

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