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Angola announced it’s leaving OPEC after 16 years of membership amid a dispute over oil production quotas.
“Our role in the organization was not deemed relevant,” Angola’s Mineral Resources Minister Diamantino Azevedo said while announcing the departure after a cabinet meeting Thursday. “It was not a decision made lightly — the time has come.”
Luanda had rejected a reduced output limit imposed by the leaders of the cartel to reflect the country’s dwindling capacity.
Angola’s exit will shrink the Organization of Petroleum Exporting Countries to 12 nations at a time when it’s struggling to shore up prices, which have lost almost 20% in the past three months. Led by Saudi Arabia, the group and its allies have cut output to offset booming US production, with only partial success.
As OPEC+ has struggled this year, Riyadh has put more pressure on smaller members to assist its efforts — such as Angola.
The country’s clash with OPEC’s leadership emerged in June, when a deal that awarded a higher production target to the United Arab Emirates forced Luanda to accept a reduced limit for 2024 that certified its fading abilities.
The quota dispute escalated last month, forcing OPEC to delay its ministerial meeting by four days.
Angola was promised a review by external consultants, but this produced an even worse outcome for the country: OPEC imposed an even lower quota of 1.1 million barrels a day, below current output.
“As a country, when we participate, it is to contribute, expecting results that align with our interests,” Azevedo said. “When this doesn’t occur, we become redundant, and it no longer makes sense for us to remain in the organization.”
OPEC, headquartered in Vienna, didn’t immediately comment.
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