Angola leaves OPEC over oil production quota row

Angola announced yesterday that it was leaving the Organization of the Petroleum Exporting Countries (OPEC) over a dispute on oil quotas. The Saudi-led oil producer group wants to further cut output to prop up prices.

OPEC’s decision on production cuts follows last month’s decision by the then-13-member group and 10 allied nations (OPEC+) that reduced Angola’s oil output by 25%. For the African nation, oil and gas accounts for around 90% of total exports.

Angola produces about 1.1 million barrels per day of the 30 million from the whole of OPEC. The oil group controls roughly 51% of the world’s crude oil market.

Oil prices fell on the news, with Brent prices down over $1 to $78.5 a barrel at the time of writing this report.

Nigeria
According to AFP, Nigeria is also unhappy about production cuts as the country feels the ask comes when it needs to focus on increasing its foreign currency earnings.

Angola and Nigeria are the two biggest oil exporters in sub-Saharan Africa.

Not alone
In the past seven years, Indonesia, Ecuador, and Qatar have all left the oil group. Angola has been an OPEC member since 2007.