Angola says it is leaving OPEC
2 Min Read
Angola's oil minister announces that the country will be leaving OPEC.
-
The sun sets behind an idle pump jack near Karnes City, USA, April 8, 2020. (AP)
Angola has announced its exit from the Organization of the Petroleum Exporting Countries (OPEC), as reported by the local news agency ANGOP on Thursday, citing the oil minister.
In the previous month, the broader OPEC+ oil producer group reduced Angola's oil output target to 1.11 million barrels per day (bpd).
In response, Angola's oil minister's office communicated its dissatisfaction by sending a note of protest to OPEC over the decision. Angola's OPEC Governor, Estevao Pedro, stated to Bloomberg that the country was discontent with its 2024 target and had no intention of adhering to it.
This comes after the oil market continued its downward spiral on Wednesday, as US crude prices hit a six-month low after plummeting below $70 per barrel.
Read next: Nigeria to be Africa's biggest oil refiner by 2025, followed by Angola
Traders anticipate an increase in oil supplies following the inability of the OPEC+ producer alliance to convince the market that it could significantly boost output cuts.
New York-traded West Texas Intermediate (WTI) crude for January delivery closed at $69.38 per barrel, marking a $2.94 drop, or a 4.1 percent decrease for the day. Earlier, WTI hit its lowest point in six months at $69.12 per barrel before correcting up slightly on closing.
Since mid-October, the US crude benchmark has witnessed a nearly 22 percent loss in value.
This drop initially began due to signs of weak seasonal demand and was further exacerbated by concerns that OPEC+ oil producers would not adhere to their promised production cuts for 2024.
