On December 21, local time, the African country of Angola announced its decision to withdraw from the Organization of the Petroleum Exporting Countries (OPEC), which attracted the attention of the global oil market. Although Angola accounts for a relatively small share of OPEC's oil production, the incident was seen as a signal of policy divergence within OPEC, raising speculation about who might be next to withdraw.
Angola announced on December 21 local time that it had decided to withdraw from the Organization of the Petroleum Exporting Countries (OPEC) due to serious disagreements over the issue of production quotas for 2024. Although Angola accounts for a relatively small share of OPEC's oil production and has no spare capacity, its exit has little impact on the global oil market**. Angola's withdrawal, however, is seen as a sign of growing policy divergence within OPEC. The move has sparked speculation about who will be the next country to exit OPEC
OPEC has been committed to maintaining the stability of the global oil market and supporting oil prices by cutting production, among other things. However, as differences between different member countries over production quotas are growing, unity within OPEC is being severely tested. Angola's withdrawal has undoubtedly created an even greater challenge to this unity.
Angola is the second-largest oil producer in Africa, producing more than half of its GDP. However, compared to other OPEC members, Angola produces less oil and has no spare capacity. As a result, Angola's withdrawal will have a relatively small impact on the global oil market**. But the bigger problem reflected in this incident is that within OPEC, the interests of member countries are increasingly divergent.
Some commentators believe Angola's withdrawal could encourage other OPEC members to consider withdrawing from the organization as well. While there are no clear indications that other countries have plans to withdraw from OPEC, the incident has raised concerns about policy coherence within OPEC. As one of the most important forces in the global oil industry, OPEC's internal policy differences have an impact on the global oil market.
At this time, the global oil market is facing challenges and uncertainties from many sources. In addition to policy differences within OPEC, factors such as slowing global economic growth, the development of renewable energy, and the energy transition also have an impact on oil prices and oil markets. Therefore, OPEC members need to work together to address these challenges and maintain the stability of the oil market.