Qatar Quits OPEC and Oil Jumps More Than 2% – See Oil and Gas Prices Predictions for 2019

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One of the oldest members of OPEC –  Qatar announced on Monday that it will leave the oil cartel on January 1. The decision was made after Qatar analyzed the possibilities of strengthening its position on the world stage.

Today, Nexter.org decided to find out how will it affect gas and oil prices.

How it happened

Qatar is the first Middle Eastern country to pull out of OPEC. It has been a member of OPEC for almost 60 years and recently it announced that its “isolating itself” by withdrawing from the organization of oil-producing nations. Qatar Petroleum made this announcement in a series of tweets.

Saad Sherida Al-Kaabi, country’s newly-appointed minister of state for energy affairs, wrote: “The withdrawal decision reflects Qatar’s desire to focus its efforts on plans to develop and increase its natural gas production.”

Oil prices rose more than 2 percent on Tuesday.

Source: Business Insider

What other countries think about this

Ellen Wald, the senior fellow at the Atlantic Council’s Global Energy Center, said that Qatar’s decision might be a sign to smaller oil producers, as oil policy becomes more concentrated in the hands of Saudi Arabia and Russia, non-OPEC member.

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Oman’s Mr. Al Rumhi said, “I’m sure there will be a lot of disappointed faces. The Saudis, Emirates, and Egypt who have an issue with Qatar and are trying to isolate it, in this move Qatar is isolating itself, I would think Qatar would look for an opportunity to integrate itself, but maybe there are some other factors.”

How will it affect the prices of oil and gas

Since Qatar is a comparatively small oil producer its withdrawal will not make a big change in energy prices. It pumps about 600,000 barrels of oil a day out of more than 27 million from all OPEC members.

Economist Intelligence Unit analyst Peter Kiernan said, “The decision by Qatar to withdraw from OPEC does come as a surprise, but is unlikely to have a significant impact on the oil market.”

What are your thoughts about this?


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Qatar Quits OPEC and Oil Jumps More Than 2% - See Oil and Gas Prices Predictions for 2019
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Qatar Quits OPEC and Oil Jumps More Than 2% - See Oil and Gas Prices Predictions for 2019
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One of the oldest members of OPEC -  Qatar announced on Monday that it will leave the oil cartel on January 1. The decision was made after Qatar analyzed the possibilities of strengthening its position on the world stage. Today, Nexter.org decided to find out how will it affect gas and oil prices.
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