Angola Announces Departure from OPEC

Angola, a significant oil-producing nation, has declared its decision to exit the Organization of the Petroleum Exporting Countries (OPEC) with effect from January 1, 2024. This move follows the footsteps of Ecuador in 2020 and Qatar in 2019, reflecting a trend of nations with relatively small oil output distancing themselves from the influential oil-exporting organization.

Angola’s OPEC Journey

Angola became a member of OPEC in 2007, contributing approximately 1.1 million barrels per day to the global oil market. In comparison, the entire OPEC group, founded in 1960 by Saudi Arabia, Kuwait, Venezuela, Iran, and Iraq, produces around 28 million barrels per day. Since its entry into OPEC, Angola actively participated in the organization’s efforts to manage the oil market, collaborating with other member nations and non-members within the OPEC+ group.

OPEC’s Evolution

OPEC, over the years, has evolved from its initial founding members to include a diverse range of nations. The group, initially formed by Saudi Arabia, Kuwait, Venezuela, Iran, and Iraq, has seen new entrants and exits. Notably, Angola’s departure reduces OPEC’s membership to 12 countries, collectively accounting for approximately 27% of the global oil market, which totals 102 million barrels per day.

OPEC’s Collaborative Efforts

Since 2017, OPEC has strengthened its influence by working closely with Russia and other non-member countries through the OPEC+ alliance. This collaboration aims to effectively manage and stabilize the oil market through production agreements and strategic decisions. Angola actively participated in these initiatives until its decision to exit in 2024.

Trends in OPEC Membership

Angola’s departure aligns with a trend of nations with relatively modest oil production leaving OPEC in recent years. In 2019, Qatar withdrew from OPEC to shift its focus towards gas production, a move seen by some analysts as a strategic decision against Saudi Arabia, the de facto leader of the organization. Ecuador followed suit in 2020, while Indonesia suspended its OPEC membership in 2016.

New Entrants to OPEC

Conversely, OPEC has also seen new members in recent years. Equatorial Guinea joined as a full member in 2017, and Gabon re-joined in 2016. Additionally, Congo became a full member in 2018, reflecting the dynamic nature of OPEC’s membership roster.

About Angola

• Capital- Luanda
• Currency- Angolan kwanza
• President- João Lourenço
• Continent- Africa

Important Questions Related to Exams

1. Why is Angola leaving OPEC?

Answer: Angola has decided to exit OPEC, following similar moves by Qatar in 2019 and Ecuador in 2020. This trend suggests a pattern of nations with relatively small oil output distancing themselves from the influential oil-exporting organization.

2. When did Angola become a member of OPEC?

Answer: Angola joined OPEC in 2007, contributing approximately 1.1 million barrels per day to the global oil market.

3. How does Angola’s oil production compare to the entire OPEC group?

Answer: Angola produces about 1.1 million barrels per day, while the entire OPEC group, founded in 1960, produces around 28 million barrels per day.

4. What is the current membership of OPEC after Angola’s departure?

Answer: Angola’s exit reduces OPEC’s membership to 12 countries, collectively accounting for approximately 27% of the global oil market, which totals 102 million barrels per day.

5. How has OPEC evolved over the years?

Answer: OPEC has evolved from its initial founding members (Saudi Arabia, Kuwait, Venezuela, Iran, and Iraq) to include a diverse range of nations. The organization has witnessed both new entrants and exits.