Qatar said Monday it intends to leave OPEC after 57 years as part of the oil cartel.
Qatar does not produce much oil and prefers to focus on its massive natural gas business, Energy Minister
Saad al-Kaabi said in explaining the decision.
Qatar is OPEC’s smallest Middle East oil producer, representing less than 2 percent of the group’s output, according to a research note Monday morning from Wood Mackenzie.
“The smaller nations of OPEC have a relatively quiet role in the group’s decision making and Qatar may also see that it has less to gain from its membership now that is not involved in the [Gulf Cooperation Council],” said Ann-Louise Hittle, vice president for oil analysis at Wood Mackenzie.
The move comes after Saudi Arabia has led an economic blockade against Qatar because of allegations that it finances terrorism, which Qatar denies.
“Rather than being a reaction to the 18-month long regional blockade against it, Qatar’s withdrawal is more likely a result of its effort to focus on its place as one of the world’s leading gas producers,” Hittle said.
It also comes during a week in which OPEC is meeting to discuss cutting oil production to raise praises.
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Qatar said it intends to leave OPEC after 57 years as part of the oil cartel.https://t.co/tlczMCj41V
— Washington Examiner (@dcexaminer) December 4, 2018
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