Angola's recent announcement that it is leaving OPEC has caused crude oil futures to decrease after initially showing gains. This decision raises concerns about the cartel's ability to maintain stable oil prices.
Angolan Oil Minister Diamantino Azevedo stated that OPEC no longer serves the interests of the African country. Angola produces approximately 1.1 million b/d of crude, making it the third nation to withdraw from OPEC, following Ecuador in 2020 and Qatar in 2019.
As of 11:45 a.m. ET, the NYMEX February West Texas Intermediate crude contract decreased by 80 cents to $73.45/bbl, while the March WTI contract dropped 85 cents to $73.60/bbl. The London-based February ICE Brent fell by 80 cents to $78.90/bbl, with March Brent seeing a decrease of 95 cents at $78.75/bbl.
Gasoline contracts had a weaker performance compared to diesel. The NYMEX February RBOB contract went down by 4.45 cents to $2.1625/gal, and January RBOB lowered by 4.65 cents to $2.1545/gal.
The NYMEX February ULSD contract declined by 1 cent to $2.674/gal, while January ULSD dropped 1.2 cents to $2.6965/gal.
In the U.S. spot markets, cash gasoline prices experienced a significant increase in the Pacific Northwest and San Francisco. By midday, San Francisco CARBOB's premium over the NYMEX widened by 2.5 cents to 21 cents, resulting in an outright price of nearly $2.40/gal, the highest price in the United States.