New York, Global oil prices experienced a sharp decline of approximately $1 per barrel on December 21 following Angola’s decision to exit the Organization of the Petroleum Exporting Countries (OPEC). Brent futures dropped by 1.18% to $78.76 a barrel, while US West Texas Intermediate crude dipped 1.29% to $73.26 at 12:20 p.m. (1720 GMT).
Angola, a relatively smaller oil producer within OPEC with a daily output of about 1.1 million barrels, cited that its OPEC membership no longer served its interests. The move has raised concerns about OPEC’s unity and direction, although its impact on global supplies is expected to be limited.
OPEC, led by Saudi Arabia, has been striving to bolster oil prices through coordinated output cuts. However, Angola’s departure underscores challenges in maintaining cohesion within the group. The decision comes after Angola expressed dissatisfaction with OPEC’s reduction of its production quota for 2024 during a meeting in November.
Simultaneously, the US Energy Information Administration reported a record-high US crude output of 13.3 million barrels per day, contributing to market concerns about potential supply disruptions amid geopolitical tensions, including recent Houthi attacks affecting shipping in the Red Sea.
This development amplifies uncertainties in the oil market, indicating ongoing shifts in global oil dynamics.
