Angola Shakes Up OPEC: What’s Next for the Global Oil Landscape?

In a surprising turn of events OPEC lost its first victim to the continuous oil cuts in the form of Angola.

As the morning session begins news from the international markets comes in and one of the main crude oil news out there is that Angola said that it would leave OPEC in a blow to the Saudi Arabia lead oil group. This decision has been taken as a direct reaction to the consecutive OPEC oil cuts by the OPEC.

Angola Withdraws from the OPEC – A View From the Oil Minister:

Angola’s Oil Minister, Mr. Fiamantino Azevedo was available for comments and said that the Organization of the Petroleum exporting countries was no longer serving the country’s interests.

In the last decade, we can see that other mid-sized oil-supplying countries like Ecuador and Qatar have left OPEC.

While delivering a presidency statement He said,

” We feel that Angola currently gains nothing by remaining in the organization and defense of its interests, we have decided to leave” 

Angola’s announced departure is a testament to the protest that may follow from Angola about the OPEC+s decision to cut its output quota for 2024/This dispute helped to delay OPEC’s last policy meeting as well which was scheduled in November and its agreement on the new output curbs. 

A Blow to the OPEC+ and Reactions from Experts: 

While talking with Reuters, Ali Al-Riyami, the former marketing director general at Oman’s energy minister said 

” This shows that there is no consensus within OPEC itself and this has been for some time now. There will be consequences no doubt about it, but I don’t think other countries will follow” 

Angola which joined OPEC in 2007 produces about 1.1 million barrels of oil per day, compared with 28 million bpd for the whole group. Almost 3 OPEC delegates speaking on the condition of anonymity said that Angola’s decision to leave came as a surprise, as they had expected the dispute over Angola’s quota to blow over. 

Angola has been unable to produce enough oil to meet its OPEC quota in recent years because of falling investment and a lack of big new oilfield developments. 

A Technical Perspective from Commodity Samachar: 

The decision came as a surprise because this has had an impact on the market, even though it was for a short time. Head of Research at Commodity Samachar, Ankit Kapoor had this to say about the events. 

” Angola has been a part of OPEC for quite some time, but its contribution to the organization was not significant. Angola has been unable to produce enough crude oil  to meet its OPEC quota in the recent year leading to its withdrawal due to financial reasons and lack of oil producing resources such as new oilfield developments. 

Hence, it is not something of concern as of now, and the flow of crude oil will continue to sustain the same. ” 

As per our analysts at Commodity Samachar, here’s a technical analysis of the situation. 

” There has been a good rise in crude oil due to the support. Crude oil is making its uptrend by breaking 6170. 

Currently, support in crude oil is at 6000 and resistance is at 6300. If crude oil breaks the level of 6300, then levels of 6400-6500 can be seen above. 

The bearish trend will form on a closing basis below 6000. “

Commodity Samachar
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