Qatar to quit global oil body Opec

Fredrick Soto
December 3, 2018

Saad Sherida Al Kaabi, the Minister of State for Energy Affairs, announced Qatar's withdrawal from Opec at a press conference in Doha, and said the organisation had been informed accordingly.

Al-Kaabi told a news conference that Doha's decision "was communicated to OPEC" but said Qatar would attend the group's meeting on Thursday and Friday, and would abide by its commitments.

Oil prices jumped by more than 5 percent on Monday after the United States and China agreed to a 90-day truce in a trade dispute, and ahead of a meeting this week of the producer club OPEC that is expected to agree to cut supply. However, Qatar has denied all the claims.

The report added that Turkish President Recep Tayyip Erdogan and Qatari Emir agreed on Turkey providing more military supplies to Qatar's military, the integration of Turkish and Qatari security efforts during FIFA World Cup 2022 in Qatar and the building of an global communication and public relations partnership between the two countries, the site said, quoting Turkish sources. Oil prices surged on Monday after the U.S. and China agreed a 90-day truce in their trade war at a weekend meeting of the G20 nations in Argentina. However, it is one of the world's biggest natural gas producers and recently signed a...

No official announcements regarding supply cuts have yet been made, but most analysts expect a reduction of 1-1.4 million barrels per day (bpd) versus October levels, which was the highest by OPEC as a group since December 2016.

Qatar has spend the last year-and-a-half battling attempts by Saudi Arabia and the United Arab Emirates (both of them are members of the Opec) to isolate it in the Middle East.

Qatar's emir, Sheikh bin Hamad al-Thani.

While the move is merely symbolic for Qatar, a founding member quitting OPEC after 57 years can not look positive for the organization, John Hall, chairman of Alfa Energy, a UK-based consulting company said in an interview with RT.

But the decision by Qatar, whose citizens have the highest per capita income of any country thanks to its status as the world's largest exporter of liquefied natural gas, to leave OPEC after almost six decades of membership is nonetheless a blow to the group and a possible sign of tensions within it. A Saudi-led coalition implemented a blockade on Qatar in June past year, severing diplomatic, trade and transport links based on accusations that stemmed from its funding of extremist groups and relations with Iran.

Qatar is also leaving at a time when being an OPEC member carries wider political risks.

Oil prices have fallen more than 25 per cent since climbing to a four-year peak in early October, amid intensifying concerns of oversupply and worries over slowing economic growth.

He said the decision reflect a growing anger by producers against what he described as the unilateral approach adopted by the Joint Ministerial Monitoring Committee (JMMC) - which is led by OPEC heavyweight Saudi Arabia and global major producer Russian Federation - to decide over production cuts.

"It could signal a historic turning point of the organization towards Russia, Saudi Arabia and the United States", said Algeria's former energy minister and OPEC chairman, Chakib Khelil, commenting on Qatar's move.

Kaabi announced the break with OPEC just weeks after he was appointed to the energy minister post.

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