Angola's OPEC exit opens way for more Chinese investment

livemint.com:

decision to leave the Organization of the Petroleum Exporting Countries could open the way for Beijing to increase investment in the country's oil and other sectors, as part of a deepening of decades-old ties. Angola said on Thursday it was leaving OPEC, effective from Jan. 1, following a row with the producer group over the size of its output quota.

Also Read: Oil down more than $1 as Angola exits OPEC cartel over production quotas; Brent drops to $78/bbl The decision also follows an agreement signed between China and Angola this month on enhanced cooperation. "China stands out as a pivotal and proven partner," Angola's Foreign Minister Tete Antonio said during a visit to Beijing when the deal was signed. Angola, for which oil constitutes 90% of exports, is seeking to diversify its economy, but it also needs revenue.

Antonio said Angola acknowledged the importance of technology, a skilled workforce and strategic partnerships that could help the country move on from oil, and called for more Chinese investment particularly in the country's coffee, batteries, and solar energy sectors. Also Read | From $82 to near $100 and back: How Brent crude moved in 2023 over OPEC+ cuts and more Angola had been seeking a higher OPEC output quota. The group's quotas are designed to support global oil prices but can limit a producer's ability to attract oil investment in new capacity because they can cap earnings.