QATAR QUITS OPEC | WHAT REALLY HAPPENED


QATAR QUITS OPEC

Qatar will leave the Organization of Petroleum Exporting Countries as of next month, its energy minister told media today, adding that the decision was part of a long-term strategy for growing its international presence on energy markets with a focus on gas.

Qatar is the world’s largest exporter of liquefied natural gas, but it has Australia breathing down its neck as well as emerging competition from the United States and other, smaller, producers.

“Qatar has decided to withdraw its membership form OPEC effective January 2019 and this decision was communicated to OPEC this morning,” Saad al-Kaabi said, as quoted by Reuters, at a news conference. He said the decision had been hard to make since Qatar had been a member of the cartel for almost six decades, but it had very little influence on OPEC decisions. Qatar produces about 600,000 bpd, which ranks it among the smaller OPEC producers.

While the minister said the decision to quit had no relation to a Saudi-led blockade by neighbors, Qatar has been subjected to for a year and a half now, tense relations with the biggest producer in the region must have had an effect on the final decision.

Webmaster's Commentary: 

So what happens when OPEC cracks up, which it looks as though it is on the verge of happening now, and how will this affect oil prices going into 2019?

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