Qatar to withdraw from OPEC

Qatar to withdraw from OPEC

Qatar to withdraw from OPEC

Qatar is the world's largest exporter of LPG.

Though Qatar is a small player in terms of the crude output, it is the world's largest exporter of liquefied natural gas.

Al-Kaabi said Qatar Petroleum planned to raise its production capability to 6.5 million barrels barrels of oil equivalent a day from 4.8 million in the next decade.

Qatar denied that political reasons are behind its sudden announcement of its imminent exit from the OPEC group of oil-producing nations in January 2019.

It is also deepens the rift between Qatar and Saudi Arabia, Opec's de facto leader, after Saudi diplomatic crackdown on its neighbour last summer. Although Russia and Saudi Arabia have yet to confirm any fresh cuts, their agreement opened the door for a deal when OPEC meets this week in Vienna.

Saudi Arabia with the support of the UAE, Egypt and Bahrain imposed a trade and travel embargo, accusing Qatar of financing terrorism and interfering in the internal affairs of other states.

The decision was announced on Monday by the country's Energy Minister, Saad al-Kaabi.

Asked if Qatar's withdrawal would complicate OPEC's decision this week, a non-Gulf OPEC source said: "Not really, even if it's a regrettable and sad decision from one of our member countries". That's compared to an average of 861,000 per day from Saudi Arabia.

Qatar will withdraw from the Organization of Petroleum Exporting Countries (OPEC) as of January, the country's energy minister announced on Monday.

Kaabi said, "Qatar has made a decision to withdraw its membership from OPEC effective January 2019".

While its oil production is one of the lowest, Qatar is said to have an influential role within the 15 member organisation. It again injects politics into an organization that long has insisted it is nonpartisan, stealing headlines just as the cartel deliberates production cuts to halt a slide in global crude oil prices.

According to the report, Qatar's wealth stems from its share in the offshore North Field, discovered in 1971, ranking third behind Russian Federation and Iran, which share in the offshore field. OPEC nations like Ecuador, Gabon and Indonesia have either withdrawn or suspended their membership in the past, only later to rejoin.

Worldwide standard Brent crude was up 4.7 per cent to $62.42 a barrel this morning United Kingdom time. U.S. West Texas Intermediate (WTI) crude CLc1 futures gained $2.02 to settle at $52.95 a barrel, a 3.97 percent increase.

The low oil price benefits consumers in the United States as well as countries such as Turkey and Pakistan, which depend on imports to meet their energy needs.

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