Qatar's OPEC Exit May Just Be The Beginning | WHAT REALLY HAPPENED


Qatar's OPEC Exit May Just Be The Beginning

Authored by Tim Daiss via OilPrice.com,

Much has already been written over the last 24 hours by pundits and analysts alike about Qatar’s decision to leave the Organization of the Oil Exporting Countries (OPEC) by January next year. Some have chimed in, claiming that it’s an irrational move, while others have, perhaps correctly, attributed it to “toxic politics” in the always volatile Middle East. The latter view has much credibility given Qatar’s ongoing geopolitical rift with many of its Arab neighbors over allegations of financing terrorist groups, which led to a regional economic boycott of the country last year.

Despite the tensions, Qatar is claiming that its exit from OPEC has no political overtones. Saad al-Kaabi, the country’s energy minister, told a news conference on Monday that the decision was not linked to the political and economic boycott imposed in June 2017 by Saudi Arabia and three other Arab states – the United Arab Emirates, Bahrain and Egypt. The group also imposed a trade and travel embargo on Qatar over allegations of support for terrorism groups.

Ending 57 years of membership
Al-Kaabi added that the decision to withdraw had not been easy after 57 years of OPEC membership, but noted that the country’s impact on the cartel’s production decisions will be small. He stressed that Doha would continue to abide by its global commitments like any other non-OPEC oil producer.

Comments

SHARE THIS ARTICLE WITH YOUR SOCIAL MEDIA