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Angola Quits OPEC Over Lower Production Quotas

Angola, which had been at odds with the organization over reduced production quotas this year, declared on Thursday that it was quitting the OPEC oil producers cartel.

Angola “does not gain anything by remaining in the organization,” according to African nation’s oil minister, Diamantino de Azevedo, according to state news agency Angop. It became a member of OPEC in 2007.

Disagreements about reduced oil quotas for some African nations, such as Angola, caused OPEC’s November meeting—where the organization and its partner producers, led by Russia, decide how much oil to distribute to the world—to be delayed by several days as usual.

Following an evaluation by the three independent sources, Angola’s output level was reduced to 1.11 million barrels per month during the conference, according to the organization.

Saudi Arabia and other members of OPEC have been working to support oil prices, which have dropped in recent months due to worries that there may be too much oil on the market in light of the faltering global economy, which might affect demand for oil for industry and travel.

While U.S. drivers have benefited from reduced gas prices in recent months by being able to fill up their tanks for less money, OPEC oil producers have suffered as a result of the lower pricing. This year, the price of benchmark US crude has dropped by 8%.

Recent days have seen an increase in oil prices as the Houthi rebels in Yemen have intensified their attacks on ships in the Red Sea, and businesses have decided to send fewer ships through the region—which is vital to the world’s energy supply passage between the Middle East, Asia, and Europe.

At its meeting last month, OPEC declared that it was adding Brazil, a significant oil producer that has been producing record amounts of petroleum this year, despite losing Angola, according to the International Energy Agency.

An OPEC spokesman didn’t immediately respond to an email seeking comment.

Written by PH

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