On Monday, Qatar unexpectedly announced it will withdraw from OPEC in January to focus on developing its massive liquified natural gas (LNG) reserves and boosting oil production above approved quotas. OPEC's de facto leader, Saudi Arabia, cut ties with Qatar and led an ongoing economic boycott in June 2017, joined by Egypt, the United Arab Emirates, and Bahrain. But Qatari energy affairs minister Saad Sherida al-Kaabi said politics weren't behind the decision to quit OPEC, and he will attend the 15-member organization's meeting later this week. "For me, to put efforts and resources and time in an organization that we are a very small player in and I don't have a say in what happens," he said, "practically it does not work, so for us it's better to focus on our big growth potential."
Qatar produces only 600,000 barrels a day (bpd) of oil, versus Saudi Arabia's 11 million bpd, so its departure and aspirations to increase crude output are expected to have little effect on sagging global oil prices; OPEC is expected to tighten production along with its allies. OPEC, or the Organization of the Petroleum Exporting Countries, was formed in 1960, and Qatar joined in 1961, the first nation to sign on outside of its founding members. It will become the first Mideast country to quit OPEC.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Create an account with the same email registered to your subscription to unlock access.
-
Antony Gormley's Time Horizon – a 'judgmental army' of 100 cast-iron menThe Week Recommends Sculptures are 'everymen questioning the privilege of their surroundings' at the Norfolk stately home
-
'King's horses take free rein through London'Today's Newspapers A roundup of the headlines from the US front pages
-
Is pop music now too reliant on gossip?Talking Point Taylor Swift's new album has prompted a flurry of speculation over who she is referring to in her songs
-
Empty-nest boomers aren't selling their big homesSpeed Read Most Americans 60 and older do not intend to move, according to a recent survey
-
Brazil accuses Musk of 'disinformation campaign'Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
-
Disney board fends off Peltz infiltration bidSpeed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
-
Disney and DeSantis reach detenteSpeed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
-
Visa and Mastercard agree to lower swipe feesSpeed Read The companies will cap the fees they charge businesses when customers use their credit cards
-
Reddit IPO values social media site at $6.4 billionSpeed Read The company makes its public debut on the New York Stock Exchange
-
Housing costs: the root of US economic malaise?speed read Many voters are troubled by the housing affordability crisis
-
Feds cap credit card late fees at $8speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
