Qatar quitting OPEC 'bad for oil cartel's and Saudi credibility'

The shale revolution has set off a hiring boom in the Permian Basin of West Texas. Some jobs could be at risk if oil prices stay cheap

Minister of State for Energy Affairs, Saad al-Kaabi, told a news conference that Qatar would still attend the group's meeting on Thursday and Friday this week.

Qatar says it will withdraw from the OPEC group of major oil-producing nations in January.

Qatar is OPEC's smallest oil producer with around 600,000 barrels per day (bpd) against the cartel's total output of roughly 33 million bpd.

"We'd suspect that numerous members are wary of how much influence the United States has over Saudi Arabia and whether this leads to decisions that are not necessarily in the best interests of OPEC", Kelty stated. Although Russia and Saudi Arabia have yet to confirm any fresh cuts, their agreement opened the door for a deal when OPEC meets this week in Vienna.

Saudi Arabia cut diplomatic ties with Qatar in June of 2017, in a dramatic move that was matched by Egypt, the United Arab Emirates and others.

The news was confirmed by Qatari Energy Minister, Saad al-Kaabi.

Covering an area of around 12 thousand square kilometres and with a population of nearly 2.7 million, Qatar is the smallest Opec member country in terms of both area and population.




Qatar's decision to leave OPEC has been described as a "surprise" by Cantor Fitzgerald Europe. That meeting is expected to be a rubber stamp for production cuts by Russian Federation and Saudi Arabia agreed upon at last week's G-20 summit in Argentina.

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. "Qatar Petroleum is considering entering into partnerships to produce natural gas in the United States as it may become one of the exporters of liquefied natural gas from the United States through its project Golden Pass", announced the Qatar News Agency. The four nations have also pointed to Qatar's close relationship with Iran, with which it shares a massive offshore gas field.

Brent crude for February settlement slightly pared gains, but still traded up 4.7% at $62.28 a barrel at 2:39 p.m.in Singapore.

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

Meanwhile, Robin Mills, CEO of Qamar Energy, a consultancy firm based in Dubai, told CNN, "Qatar is a fairly small producer.It was not making very much, so it's not that significant in itself".

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.

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