Analyst: impact of Qatari withdrawal from OPEC mainly political
136 views · Published 9 December 2018 · 1:58 · Indexed 24 September 2026
Channel: AP Archive · 2018 · News & Politics
(3 Dec 2018) An energy analyst in Vienna said the impact of Qatar's withdrawal from OPEC is "marginal" because the energy-rich Arab nation is focused on the production of gas, not oil. "It is important to understand that Qatar is a top 5 world gas producer but in terms of crude oil production as defined by OPEC, they might not even be in the 25," analyst David Wech of JBC energy said. The tiny nation announced on Monday it will withdraw from OPEC in January, mixing its aspirations to increase production outside of the cartel's constraints with the politics of slighting the Saudi-dominated group amid the kingdom's boycott of Doha. The surprise announcement from Qatar's minister of state for energy affairs, Saad Sherida al-Kaabi, again throws into question the role of the cartel after needing non-members to push through a production cut in 2016 after prices crashed below 30 US dollars a barrel. It also marks the first time a Mideast nation has left the cartel since its founding in 1960. In a statement, al-Kaabi said Qatar, the world's largest exporter of liquified natural gas, planned to increase its exports from 77 million tons of gas per year to 110 million tons. He also said Qatar wants to raise its oil production. OPEC sets production targets for its members in an effort to control the price of oil available on the global market. However in recent years, oil-producing nations outside of the group like the United States and Russia have played a larger role in affecting prices. Find out more about AP Archive: http://www.aparchive.com/HowWeWork Twitter: https://twitter.com/AP_Archive Facebook: https://www.facebook.com/APArchives Instagram: https://www.instagram.com/APNews/ You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/41b7e6045a438bd135c40bd582633e7c
