Bahraini analyst has called the exit of Qatar from OPEC logical

© REUTERS / Christian HartmannНефтяные conventional pumping unit. Archival photoBahraini analyst has called the exit of Qatar from OPEC logical© REUTERS / Christian Hartmann

Qatar’s decision to exit OPEC seems logical, as the share of countries in oil production is relatively small compared to other cartel participants — only 2% according to the RIA Novosti expert for the Bahrain center of studies in the field of strategy, international relations and energy DERASAT Abdel Aziz al-Dosari. DERASAT among the five largest Arab research centers.

Qatar, held at the OPEC for over 57 years, on Monday announced its withdrawal from the organization. The country intends to focus on gas production and increased LNG production. The announcement was made ahead of a meeting of OPEC Ministers on December 6 in Vienna. There on 5 December at a meeting of the Ministerial monitoring Committee of OPEC+, and 7 December, the Ministers of all 25 member countries of the OPEC agreement+.

«The exit of Qatar from OPEC seems logical. The share of Qatar is only 2% of the total production capacity of OPEC, at the same time, it is the largest player in the LNG market. Natural gas accounts for over half of total exports of Qatar and twice the revenues from exports of oil and oil products, which demonstrates the importance of natural gas for Qatar compared to oil and, as a consequence, the importance of his membership in OPEC,» said al-Dosari.

Another reason for the exit of Qatar from OPEC, according to analysts, could be the involvement of international oil companies in the energy sector of the country. «It is unlikely that a joint venture of the Qatari state-owned companies and international oil companies welcomed the policy of OPEC, in particular, agreements on production cuts. This situation can lead to conflicts in the framework of joint projects, and it could also be a factor that contributed to the exit of Qatar from OPEC», — the expert believes.

Also, according to him, the decision of Doha was influenced by the problem of relations between OPEC as a cartel with small producers. «From the time of the transaction of OPEC with participation of Russia’s increased influence was evident not only at the level of OPEC+, but in the «parent» of OPEC. Given the level of oil production in Russia, which is more than 11 million barrels a day, OPEC and performance in General — 32-33 million barrels a day, OPEC deal+ created leverage to influence Russia in this organization. Small OPEC members in such a situation have come to believe that their interests are ignored by the cartel for the sake of Russia on Board of the OPEC+,» — said al-Dosari.

In addition, he believes, to coerce Qatar to withdraw from the organization a U.S. law NOPEC, which aims to sanctions against OPEC for its role in «manipulating» the oil market. «Despite the fact that this law has been before Congress on several occasions he was imposed the veto by the previous presidents of the United States, there is reason to believe that the current Congress will pass it and the law will get the approval of the President of the United States of trump,» said al-Dosari.

Bahraini analyst has called the exit of Qatar from OPEC logical© Vitaly Pedicellata just Catharsis