The expert commented on the exit of Qatar from OPEC

© AP Photo / Hasan JamaliДобыча oil. Archival photoThe expert commented on the exit of Qatar from OPEC© AP Photo / Hasan Jamali

The output of Qatar from OPEC, which said on Monday the state Minister for energy of the country, should not affect the OPEC Alliance+, as the country intends to fulfil its obligations under the transaction, as other member countries, not members of the cartel, told RIA Novosti expert energy Centre of Moscow school of management SKOLKOVO Catherine Grushovenko.

«The exit of Qatar from OPEC should not affect the coalition OPEC+, because, according to the statement of the Qatari side, they will be like other countries that are not members of OPEC to meet its obligations. However, even if Qatar will begin to increase production, it will not be so essential to the market — reduction to Qatar amounted to 30 thousand barrels per day in October it amounted to almost 40 thousand barrels per day, indicating certain difficulties and barriers to increase production,» — said the expert.

«Another reason for the withdrawal from OPEC is an economic boycott of Qatar in June 2017 from the Gulf countries led by Saudi Arabia. In doing so, the representatives of Qatar stresses that this cause is not,» said Grushovenko.

Earlier on Monday, state Minister for energy of Qatar Saad bin Shreda al-Kaabi said that the country had adopted a decision on withdrawal from OPEC because of the desire to focus on the production of gas and production of liquefied natural gas. According to him, this decision was not political and not caused by contention with other countries. In addition, Qatar will continue to fulfill international agreements after leaving the cartel as any country outside of the organization. Qatar plans on Monday to inform OPEC on the country’s withdrawal from the organization in January.

Meeting of the Ministerial monitoring Committee of OPEC+ will take place on 5 December in Vienna, December 6 there will be a meeting of Ministers of OPEC member countries, and on 7 December, the Ministers of all 25 member countries of the OPEC agreement+.

OPEC and several non-organisation countries (OPEC+) agreed in late 2016 in Vienna on the reduction of oil production to 1.8 million barrels per day from the level of October 2016, of which 300 thousand were in Russia. The contract started from the beginning of 2017 and has been extended until the end of 2018. In June 2018 OPEC+ agreed goal is to escape from the fulfillment of the terms of the agreement, which then accounted for 47%. We explained that in practice this will mean increasing production by 1 million barrels per day. Recently, the parties to the transaction are increasingly talking about the risk of oversupply of the commodity on the market in 2019, which could affect the decision to return to the reduction of oil production as part of the transaction.

The expert commented on the exit of Qatar from OPEC© Infographicsrussia forces in the world oil market