Source- This post is based on the article “Angola quits OPEC amid dispute over oil production quotas ” published in “Live mint” on 21st December 2023.
Why in the News?
Angola has opted to withdraw from the Organization of the Petroleum Exporting Countries (OPEC) due to a disagreement concerning oil production quotas.
Note- Several other members have quit the group in recent years, for different reasons: Qatar, Indonesia and most recently, Ecuador.
What will be the impact of this decision?
1) It will shrink membership of OPEC to 12 nations.
2) Angola’s departure raised concerns regarding the unity of the organization and resulted in a drop in international oil prices.
What is Organization of the Petroleum Exporting Countries (OPEC)?
| Specifications | Details |
| What is it? | It is an intergovernmental organisation of oil producing nations. They together account for an estimated 44 percent of global oil production and 81.5 percent of the world’s “proven” oil reserves. |
| Objective | To coordinate and unify petroleum policies among its member countries to secure fair and stable prices for petroleum producers. |
| Founded in | 14 September 1960 in Baghdad, Iraq. |
| Headquarter | Vienna, Austria. |
| Members | Total members countries– 13 (Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates, and Venezuela) Founding members– Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela |
| Functions | 1) It plays a significant role in influencing global oil production levels to meet market demand and maintain the economic interests of its member nations. 2) Decisions about matching oil production to expected demand are taken at the meeting of the OPEC conference. |
What is OPEC+?
About Angola
1) Angola is a country located on the west coast of Southern Africa.
2) It is bordered by Namibia to the south, the Democratic Republic of the Congo to the north, Zambia to the east, and the Atlantic Ocean to the west
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