Angola leaves OPEC

Angola leaves OPEC

News: Recently, Angola has decided to leave OPEC which comes a setback for the Saudi-led oil producer group.

About OPEC:
• It was established in 1960 at the Baghdad Conference by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela, is an intergovernmental organization with key members including Algeria, Equatorial Guinea, Gabon, Libya, Nigeria, the Republic of the Congo, and the United Arab Emirates.
• The organization’s primary objective is to coordinate and unify petroleum policies among member countries, ensuring fair and stable prices for petroleum producers and maintaining an efficient, economic, and regular supply of petroleum to consuming nations. With its headquarters in Vienna, Austria, OPEC holds significant global influence, possessing over 80% of the world’s total crude oil reserves.

Why has Angola left?
• As per Angola, OPEC no longer serves its interests, following a dispute over its output quota.
• Angola’s exit, joining Ecuador and Qatar as former members, further challenges OPEC’s market share, which has been decreasing due to production cuts and rising output from non-OPEC countries.