2023-12-21T15:49:07+00:00
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The Angolan government announced, on Thursday, that it will withdraw from OPEC in protest against the production reduction plan that the organization has been following for several months and decided to extend it until the first quarter of next year.
Angolan Oil Minister Diamantino Azevedo said that his country will withdraw from the Organization of the Petroleum Exporting Countries (OPEC) because membership does not serve its interests, without giving further details, according to the “CNBC Arabia” network specializing in economic affairs.
Angola, which joined OPEC in 2007, produces about 1.1 million barrels of oil per day, compared to 28 million barrels per day for the entire group.
Oil prices continued their losses due to this news, and the price of Brent fell by more than a dollar to $78.50 a barrel by 12:50 GMT.
Angola’s exit represents a setback for OPEC and its allies, at a time when the group is trying to convince members to reduce production to support prices.
Last month, Azevedo’s office protested OPEC’s decision to reduce its production quota for 2024. Angola’s OPEC governor, Estevao Pedro, also said that his country is not satisfied with its 2024 target and does not plan to adhere to it.
Both Nigeria and Angola had previously expressed their dissatisfaction with the reduction in their share of production during the ministerial meeting last November, which was postponed for days due to disagreements between member states.
Interview Between Time.news Editor and Energy Expert
Editor (E): Welcome to Time.news, where we delve deep into the major events shaping our world. Today, we’re addressing a significant decision made by the Angolan government to withdraw from OPEC in response to recent production reduction plans. Joining me is Dr. Mariana Silva, an expert in energy policy and international relations. Thank you for being here, Dr. Silva.
Dr. Silva (S): Thank you for having me. It’s a pleasure to be here to discuss such an important topic.
E: Dr. Silva, let’s dive right in. The Angolan government’s decision to leave OPEC has raised quite a few eyebrows. Can you explain what led to this move?
S: Certainly. Angola’s decision stems from a dissatisfaction with OPEC’s recent production reduction plan. As a member of OPEC, Angola is expected to adhere to quotas that limit production to stabilize or increase oil prices. However, for a nation that relies heavily on oil revenue, such reductions can be detrimental to its economy. This withdrawal signals a protest against policies that they believe do not consider their unique economic challenges.
E: That’s an important point. Angola’s economy is deeply tied to oil exports. How will this withdrawal impact Angola’s economy in the short and long term?
S: In the short term, Angola might see some immediate benefits, such as the ability to increase production without adhering to OPEC’s quotas. This might boost revenues at a time when they are in desperate need of funds. However, in the long term, the repercussions could be more complex. Angola risks alienating other OPEC members, which may affect its ability to engage in future oil trade agreements or collaborations. Additionally, it could face fluctuating oil prices without the stabilizing influence of OPEC.
E: Interesting. Speaking of oil prices, how do you forecast the global oil market reacting to Angola’s departure from OPEC?
S: The situation is quite dynamic. Angola currently produces a significant amount of oil, so its withdrawal could suggest volatility in the market, particularly if other nations consider similar moves. Investors may respond with caution, leading to fluctuations in oil prices. However, OPEC’s remaining members will likely continue to manage production cuts to maintain price stability. Ultimately, it’s a delicate balance.
E: And how do you see this affecting other OPEC members? Is there potential for a domino effect?
S: There’s always the risk of a domino effect in such situations. If other struggling members observe Angola’s move as a viable strategy for economic recovery, they might consider following suit. This could lead to a weakening of OPEC’s influence. However, many members have significant political and economic incentives to remain within the organization, so it may not lead to widespread withdrawals yet.
E: Shifting gears a bit, what does this mean for international relations within the energy sector? Will Angola’s departure have diplomatic implications?
S: Absolutely, it could have significant diplomatic repercussions. By withdrawing from OPEC, Angola may signal to other nations that it prioritizes its national interests over OPEC’s collective strategy. This shift could alter its relationships with both OPEC members and non-OPEC oil producers, possibly leading to new alliances or tensions. The global energy landscape is intertwined with politics, and such a move can certainly ripple throughout international relations.
E: Dr. Silva, thank you for sharing your insights. It’s clear that Angola’s decision to withdraw from OPEC is not just a standalone event but part of a larger narrative regarding national interests in the face of global energy policies.
S: Thank you for having me. It’s crucial to keep discussing these developments, as they shape not only economies but also the geopolitical landscape of our time.
E: And to our viewers, stay tuned as we continue to unpack the implications of this decision and others affecting the global energy market. Thank you for watching Time.news.