Why is Qatar leaving OPEC?

Qatar pulls out of Opec oil producers' cartel

Qatar pulls out of Opec oil producers' cartel

Oil prices jumped almost four percent on Monday after the United States and China agreed to a 90-day truce in a trade dispute and Canada's Alberta province ordered a production cut, while exporter group OPEC looked set to reduce supply.

Qatar will withdraw from Opec on January 1, Qatari Energy Minister Saad Sherida Al Kaabi announced on Monday.

The gas-rich Gulf state said its attendance at the upcoming Opec meeting in Vienna this week will be its last as it prepares to assert its dominance in the global gas market.

Qatar also wants to raise its oil production from 4.8 million barrels a day to 6.5 million barrels, he said.

Doha, one of OPEC's smallest oil producers but the world's biggest liquefied natural gas (LNG) exporter, is embroiled in a protracted diplomatic row with Saudi Arabia and some other Arab states.

The tense relationship between Qatar and its big brothers - Saudi Arabia and the United Arab Emirates (UAE) - had come unstuck back in June 2017 when Doha came under an unprecedented blockade orchestrated by Riyadh.

Qatar has announced that it will withdraw from the OPEC group of oil-producing nations.

"There are many other OPEC members frustrated that the JMMC is deciding on production unilaterally and without the required prior consensus of OPEC".

US, Mexico and Canada sign new USMCA trade deal
Trump signed the agreement with the LGBT provisions intact even though a group of 38 House Republicans led by Rep. Under the new pact, 75 percent of automobiles content must be manufactured in North America.

These countries, which also include large economies such as China and India, account for 75 percent of Iran's energy export.

One reason for the gain was the weekend announcement that China would substantially increase its purchases of energy, industrial and agricultural products from America, and President Trump would put on hold his plans to increase tariffs on Chinese goods, including iPhones and laptops.

Russian Federation and Saudi Arabia, by contrast, want to renew and institutionalize the cooperation deal. With these factors together, the nation is cutting ties with OPEC.

Worldwide standard Brent crude was up 4.7 per cent to $62.42 a barrel this morning United Kingdom time.

They say the crisis stems from Qatar's support for extremist groups in the region, charges denied by Doha.

In another report by Legit.ng, the Department of Petroleum Resources (DPR) on Monday, November 26, said Nigeria lost its most valued crude oil buyers, even as its erstwhile gas customers were now competing with it.

The state petroleum agency that reported the news said that the body had been informed of the move.

The Cantor Fitzgerald Europe representative revealed that her company doesn't think Qatar's decision to leave "makes much of a difference to the ability of OPEC to influence global supply and ergo prices".

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