Sunday, April 11, 2021
Home Economy and Finance Qatar to become the first Gulf nation to withdraw from OPEC, decision effective from...

Qatar to become the first Gulf nation to withdraw from OPEC, decision effective from January 2019

Being one of the smallest oil producer in OPEC, Qatar has little influence on the organisation

Qatar will be withdrawing from the Organisation of the Petroleum Exporting Countries (OPEC) in January 2019, its energy minister has announced. Qatar is one of the 15 member countries of the international cartel of oil exporting nations. On Monday the country’s energy minister Saad al-Kaabi told a news conference that “Qatar has decided to withdraw its membership form OPEC effective January 2019 and this decision was communicated to OPEC this morning.”

The minister said that the decision to pull out of OPEC was not easy as Qatar has been a member of the organisation for 57 years, but added that the countries impact on decisions made by OPEC was small. The country will be withdrawing from the organisation effective from 1 January 2019.

The minister said that Qatar intends to focus its efforts on developing its natural gas industry. He added that the decision represents a technical and strategic change, and it is not politically motivated. He also said that the decision was not linked to economic boycott imposed on the country by Saudi Arab and three other Arab nations. In 2017, Saudi Arab, UAE, Bahrain and Egypt had imposed an economic boycott against Qatar.

Qatar is one of the smallest producers of oil in the OPEC nations, with less than 2% share in the total OPEC production. But it is the world’s largest exporter of liquefied natural gas (LNG), and the nation wants to concentrate on LNG. The energy minister said that Qatar will be increasing its natural gas production to 110 million tons from current 77 million tons per year. He said, “Qatar has worked diligently during the past few years to develop a future strategy based on growth and expansion, both in its activities at home and abroad”.

To maintain international crude prices as a desirable level, OPEC imposes production quota on its member countries. This ensures that there is no excess supply of oil in the market which can drive down the prices. Although OPEC claims it acts as a modest force for market stabilisation, and not as an anti-competitive cartel.

Other OPEC members have exited the group in past, but Qatar is the first Gulf nation to do so. This comes ahead of OPEC meeting in Vienna on December 6. OPEC and its allies including Russia will discuss cutting supplies in the meeting to stop the ongoing drop in crude prices.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

Asked BARC to pay if they wanted to avoid torture: Sachin Vaze, money laundering and the Rs 30 lakh bribe in TRP case

Citing sources, TOI reported that BARC officials had admitted to the ED about making such a payment to Sachin Vaze via an inspector.

Here are 5 major incidents of violence that took place during the fourth phase of polls in West Bengal

Fourth phase of polls in West Bengal today was the most violent one, with several incidents of attack on central forces by TMC workers

Arhtiyas call off strike after Punjab govt modifies software allowing them to get paid for foodgrain procurement from farmers

The Arhtiyas withdrew the strike after the CM assured them that they will remain an integral part of the food grain procurement system

Lokmat thinks infamous discussion of journalists with Prashant Kishor took place in a real clubhouse, says comments were leaked because ‘door was open’

Lokmat said that a TMC meeting took place in a Clubhouse in Kolkata, and journalists and citizens overheard it as door was open

TMC leader Sujata Mondal Khan labels Dalits as ‘beggars by nature’, claims that they sold themselves to the BJP

Trinamool Congress (TMC) leader Sujata Mondal Khan made disparaging comments against the Dalit community.

Lakhs of Muslims gather in Bareilly after Friday prayers demanding arrest, beheading of Yati Narsinghanand Saraswati

Several Muslims shared videos of the protest in Bareilly on Twitter, where they referred to Yati Narsinghanand as a ‘Bhagwa Terrorist’.

Recently Popular

USA: Police officers show up at Twitter user’s home for criticising Congresswoman AOC on social media, her spokesperson denies involvement

Two policemen visited the home of an American citizen for tweeting against Alexandria Ocasio-Cortez (AOC).

Maharashtra Congress leader slams Aaditya Thackeray for clearing Rs 3,693 crores to renovate bungalows of Shiv Sena corporators

Janardan Chandurkar requested governor to intervene after Aaditya Thackeray allotted Rs3,693 crores to Shiv Sena corporators

Prashant Kishor says internal survey shows BJP win, hails PM Modi, admits TMC’s Muslim appeasement politics: Here is everything he said on Clubhouse

"Major problem that we have to accept is that there have been efforts for the last 20 years to appease the minorities," said Prashant Kishor

Watch: Arnab Goswami’s special message for Barkha Dutt after Sachin Vaze lands in Taloja Jail

Without explicitly naming Barkha Dutt, Arnab Goswami slammed the journalist for celebrating his unlawful arrest.

Lutyens journalist speaking ‘truth to the power’ by discussing Mamata Banerjee’s toilet routine

An embarrassed Prashant Kishor jokingly asked the Lutyens journalist, "Am I expected to answer this also?"

Lakhs of Muslims gather in Bareilly after Friday prayers demanding arrest, beheading of Yati Narsinghanand Saraswati

Several Muslims shared videos of the protest in Bareilly on Twitter, where they referred to Yati Narsinghanand as a ‘Bhagwa Terrorist’.
- Advertisement -

 

Connect with us

254,077FansLike
528,339FollowersFollow
24,200SubscribersSubscribe