ANGOLA EXITS OPEC

Context

Angola, Africa’s second largest oil producer, has announced its exit from OPEC following its disagreements concerning the production targets.

Background

1. OPEC and allied nations decided to slash oil production in 2024 to prop up volatile global prices.
2. As a result, OPEC decided to reduce Angola's oil output target.
3. Angola’s stands: Decision of slashing oil production goes against its policy of avoiding decline and respecting contracts.

Impact of the Decision

1. Number of OPEC members was reduced from 13 to 12, with Angola’s departure.
2. Departure raises concerns regarding the unity of the organizations and results in a drop in the International oil prices.
   • Post announcement, prices already felt by more than 1%.
3. Divergence in the supply chain might escalate the existing geopolitical tensions, impacting oil shipping routes.

What is OPEC?

1. The OPEC is a permanent, intergovernmental organization of the oil producing nations.
2. Headquarters: Vienna, Austria.
3. Origin can be traced back to the Baghdad Conference in 1960, by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
4. At present 12 Members (with Angola’s exit)
   • Algeria, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates, and Venezuela.
5. Angola joined the group in 2007.

• Other Countries which had already left OPEC: Ecuador, Indonesia and Qatar.

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