OPEC is a cartel formed by oil-producing countries seeking to coordinate and unify their petroleum policies. Founded in 1960, its theoretical objective, according to its narrative, is to ensure stability in oil prices by coordinating the production policies of its members. However, in practice, OPEC’s goal is to artificially maintain high oil prices.
Some reasons for this include: Growth in Production in the U.S. and Canada Production in Brazil and Guyana New Frontiers in Africa and Suriname Greater Geographic Diversification
Angola’s decision to leave OPEC points to ongoing strategic changes. Exiting the cartel offers Angola renewed flexibility in its production policies, allowing the country to seek economic boosts from oil exports, as well as alternative alliances and bilateral agreements.
The level of OPEC’s power and influence will depend on its ability to address several factors beyond its control. Angola’s decision to leave the cartel signals a potential crack, indicating that other countries may follow suit, weakening the organization’s internal cohesion.