NEW YORK: Oil prices settled lower on Thursday (Dec 21) after Angola said it would exit the Organization of the Petroleum Exporting Countries (Opec), raising questions about the producer group’s efforts to support prices by limiting global supplies.

Brent crude futures settled down 31 cents at US$79.39 (RM369.60) a barrel. US West Texas Intermediate crude futures fell 33 cents to US$73.89 (RM343.99) a barrel.

Earlier in the session, both benchmarks were down by more than US$1 after Angola said it was planning to leave the group.

Angolan oil minister Diamantino Azevedo said the country’s membership in Opec was not serving its interests. The Saudi-led producer group in recent months has been rallying support to deepen output cuts and boost oil prices.

“It seems like Opec is losing the battle to keep prices higher,” said Matt Smith of shipping tracking firm Kpler, noting that non-Opec producers such as the Opec have stepped up to fill the supply gap.

Angola produces around 1.1 million barrels per day (bpd), compared with 28 million bpd for the whole group.

The country’s exit raises questions about the cohesion and direction of Opec, even though it is one of the smallest producers and its departure may have a limited impact on global supplies, Smith said.

At a meeting in November, Angola had protested a decision by Opec to cut its production quota for 2024 to help prop up oil prices.

Separately, the US Energy Information Administration said US crude output rose to a record 13.3 million bpd last week, up from the previous all-time high of 13.2 million barrels per day.

“The US is poised to increase production in the Permian Basin and across the country,” said Tim Snyder, economist at Matador Economics in Dallas.

“We’ve mitigated price risk here in the US and really put the Russians and the Saudis back on their heels,” he said. – Reuters