2 African nations, Angola and Nigeria, pump a reasonable amount of oil.
Both nations are part of the OPEC+ axis of the world oil producing cartel. Both nations suffer from under pumping of their 'quotas' due to the fact that both have mature oil fields and both also have the same problem of suffering from new investment. But Angola has been fighting with OPEC for years and finally dropped out of the alliance.
Angola has the nickname of "China's Gas Station" so it is a sure bet that China is going to figure out ways to not only modernize the Angolan drilling/production, to export more to China, but also to sell more to other nations so that they can skim off more cash from the top and keep that too.
The net effect is the world price for oil, even if they ONLY pump up to their old quota, is that there will be more oil in supply and therefore prices should come down to consumers (assuming OPEC does not cut their production).
The real question now is will Nigeria, which was also given a lower quota by OPEC, also jump ship and depart from OPEC?
Of note, both Nigeria and Angola are on the WEST coast of the continent of Africa. Both have ports that can ship oil north to Europe and west to the Americas without having the ships go thru the SUEZ canal or pass around the Cape of Good Hope. This could get interesting.
Both nations are part of the OPEC+ axis of the world oil producing cartel. Both nations suffer from under pumping of their 'quotas' due to the fact that both have mature oil fields and both also have the same problem of suffering from new investment. But Angola has been fighting with OPEC for years and finally dropped out of the alliance.
Angola has the nickname of "China's Gas Station" so it is a sure bet that China is going to figure out ways to not only modernize the Angolan drilling/production, to export more to China, but also to sell more to other nations so that they can skim off more cash from the top and keep that too.
The net effect is the world price for oil, even if they ONLY pump up to their old quota, is that there will be more oil in supply and therefore prices should come down to consumers (assuming OPEC does not cut their production).
The real question now is will Nigeria, which was also given a lower quota by OPEC, also jump ship and depart from OPEC?
Of note, both Nigeria and Angola are on the WEST coast of the continent of Africa. Both have ports that can ship oil north to Europe and west to the Americas without having the ships go thru the SUEZ canal or pass around the Cape of Good Hope. This could get interesting.