Angola withdraws from OPEC oil cartel

Angola currently is producing about 1.1 million barrels per day, with almost 30 million from the whole of OPEC. It has been a continuous member of OPEC for 16 years and is the fourth country after Ecuador, Indonesia and Qatar to exit the organisation. 

Angola recently states that it is leaving the oil producers' organisation Opec over a dispute on output quotas,
this decision came into effect at Thursday's cabinet meeting.

Notably, Angola and Nigeria are the two biggest oil exporters in sub-Saharan Africa. Angola has vast mineral and petroleum reserves, and its economy is among the fastest growing in the world but economic growth is highly uneven.

Read Also : NTPC Kanti Awarded Gold in HR Excellence by APEX India

The oil pricing hit soared after Covid breakdown pandemic era along with rising turmoils of geopolitical tension led by Russia's full invasion of Ukraine, spurring more than $120  a barrel in June 2022.

While oil prices seem stable with mixed floating rates after it fell more than $1 per barrel on Thursday. The Brent crude futures got down to $78.40 a barrel, while US West Texas Intermediate crude was lower by $1.19, or 1.60 percent, at $73.03.

As per the oil market perception, the impact is radically minimal as oil production in Angola was on a downward trend and higher production would first require higher investments.

Read Also : Canara Bank Q4 results, Net Profit up by 18.33% YoY

OPEC  [Organization of the petroleum exporting countries] is a 13 member countries group which enables the cooperation of leading oil-producing countries in order to collectively influence the global oil market and maximize profit. 

A larger group called OPEC+ consisting of OPEC members plus other oil producing countries, formed in late 2016 to exert more control on the global crude oil market where Canada , Egypt, Norway and Oman are observer states.

Read Also : Blackstone-backed Aadhar Housing Finance IPO commences at Rs 300-315