Qatar to quit global oil body Opec

Qatar to quit global oil body Opec

Qatar to quit global oil body Opec

One of the world's key energy producers, Qatar, is quitting the Organization of the Petroleum Exporting Countries (OPEC) on January 1, Energy Minister Saad al-Kaabi said.

"Qatar has chose to withdraw its membership from Opec effective January 2019 and this decision was communicated to Opec this morning", the minister said.

He added that OPEC was told of the decision on Monday ahead of the announcement.

OPEC is dominated by oil-rich Saudi, which along with its allies has had no ties with Qatar since June 2017.

Oil prices soared on Monday after Russian Federation and Saudi Arabia renewed an agreement to cap output, while the USA agreed to halt raising tariffs on Chinese imports, stalling a trade row that many feared could hit demand for the commodity.

The Gulf state would still continue to produce oil but would concentrate on gas production, where it is the biggest exporter of liquefied natural gas in the world, he said.

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Meanwhile, previously reported that a revenues fact sheet report published by the US Energy Information Administration (EIA) said that between January and July of 2018, Nigeria earned as much as N7.93 trillion ($26 billion) from oil exports making it the sixth largest revenue earner among Organisation of Petroleum Exporting Countries (OPEC) member nations.

Now Qatar will be able to produce at whatever level it wants, she said, "but I wouldn't see it as a threat to Opec's efforts to cut their production because [Qatar] is not capable on its own of flooding the market". It is expected to boost its annual LNG output from 77 million to 110 million tons.

The Gulf state said it would focus on gas production.

In October, the oil price reached a four-year high of $86, but since then the price has dropped again to about $60 per barrel. Doha denies the charges and says the boycott aims to impinge on its sovereignty.

Mordecai Ladan, the director, DPR, said the oil and gas industry seemed to be under a new threat, which he described as the renewed dislike and global war against fossil fuels and the quest for renewable and cleaner energy.

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