Qatar withdrew from OPEC. He expects the oil market

Катар вышел из ОПЕК. Что ожидает рынок нефти

Qatar preoriented from oil to gas

Kartel December 5-7, meets in Vienna to discuss production cuts amid the biggest monthly drop in oil prices over the decade.

Qatar ahead of a meeting of OPEC countries+ in Vienna, announced its withdrawal from the organization, contributing to napryazhennoe the situation before the talks against the background of falling oil prices.

According to the official version, the output of Qatar is associated with the switch from oil to gas production. However, experts believe in the political cause. Корреспондент.net tells details.

 

Reasons for withdrawal of Qatar from OPEC

The intention of Qatar to leave the Organization of countries-exporters of oil, on 3 December announced the Minister of energy and CEO of Qatar Petroleum Saad Sherida al-Kaabi.

For the first time an Arab country out of OPEC. Before the organization left Gabon and Ecuador – because of the inability to pay membership contributions as well as Indonesia since ceased to import raw materials due to the fall in domestic production. Qatar OPEC was 57 years, almost since its inception.

The share of Qatari oil at best accounted for 2.5 percent of the total production of OPEC, the last time this indicator does not exceed two percent. Therefore, the decision of Qatar is unlikely to impact on the oil market will cause the collapse of OPEC.

The government of Qatar stated that the reason for the release was “reviewing ways to enhance its role in the international arena.” We are talking about increasing the production of liquefied natural gas by more than 40 percent to 110 million tons per year.

Al-Kaabi stressed that the differences with other oil exporters, as well as with the political and economic boycott of Qatar did not influence their decision.

Qatar is ramping up production of gas on the basis of the largest in the world North of the field. The new capacity will produce 32 million tons of LNG per year. Thus Qatar will be the rival to the United States and Russia.

However, experts believe that Qatar wants to show its economic independence from the neighbors. According to the Wall Street Journal, the strengthening of relations between Russia and Saudi Arabia, which initiated a boycott of Qatar, is the main reason to secede from OPEC.

“The decision of Qatar has a political dimension, it is a recognition of the declining role and influence in the light of the political isolation,” – wrote on his Twitter page, the Minister of foreign Affairs of the UAE Anwar Gargash.

However, Qatar managed to overcome the economic consequences of the blockade, including through the support of the United States, in the territory of the Emirate is the largest military base in the middle East. In addition, Qatar has kept contact with the European Union, Russia and regional players.

The collapse of oil prices. Like US to displace competitors

Experts also believe that Qatar wants to strike at Saudi Arabia, whose reputation is rocked by the murder of a journalist in Turkey.

The deal is Saudi Arabia with Russia

Qatar announced its withdrawal from OPEC soon after December 1, when Russian President Vladimir Putin after talks with the crown Prince of Saudi Arabia Mohammed bin Salman on the sidelines of the summit Big twenty in Argentina said that the countries agreed to extend the agreement to reduce oil production. Details are not yet disclosed.

This Treaty was also marked by the fiery hands of Putin and Salman, which was discussed in the media.

Wall Street Journal writes that OPEC members unhappy with the strengthening of ties between Saudi Arabia and Russia now, when it seeks to cut production to raise oil prices.

Sources report that they are more concerned about the fact that Saudi Arabia allows Russia, which is not included in this organization have too much influence on world oil prices.

OPEC officials believe that the plans of the organization for the decline in production with the aim of increasing prices may be under threat if Russia will not support them. December 7, is scheduled to meet Russia with OPEC.

Helima Croft, strategist at RBC canadian company, says that Russia “may disrupt the balance between successful and failed endeavors” of OPEC.

Meanwhile, many members of this organization, including Venezuela, Algeria, Kuwait and Nigeria, argue that against the background of strengthening ties between the two largest exporters of oil, they feel that they are gradually pushed into the background.

 

The meeting of OPEC amid falling oil

OPEC and its allies will meet this week in Vienna (5-7 December) to discuss production cuts amid the biggest monthly drop in oil prices over the decade.

The saturation of the oil market triggered the fall in oil prices by 30 percent in comparison with the October level.

For all 60 years of existence, OPEC has not faced such an acute problem, writes Bloomberg. For years OPEC and Russia could control the balance of the market: if the price of oil had fallen prey increased; if oil rose in price – cut. It is possible to guarantee the income of exporting countries.

Now, according to Bloomberg, the control over the oil market is in the hands of three people – the President of the United States Donald trump, the President of Russia Vladimir Putin and crown Prince of Saudi Arabia Mohammed bin Salman. They will determine oil prices in 2019 and beyond.

Today they produce more oil than 15 the rest of the OPEC countries. They mined record volumes of oil, and all they can next year to increase production.

On 5 December the Monitoring Committee of the OPEC+ reached consensus on reducing oil production, said following the meeting in Vienna, oil Minister of Oman, Mohammed al-Rumhi.

The OPEC Committee+ met at the Ministerial level on the eve of the meeting of the members of the cartel. According to al-Rumhi, Russia at a meeting in Vienna, agreed to reduce oil production for a period of six months starting from January 2019. About specific reductions agreement yet, said al-Rumhi.

In the next two days, on 6 and 7 December, OPEC and the countries not belonging to the organization will have to make a decision on the extension of the agreement on production cuts. On the news the oil reacted with little growth.

 

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