Qatar pulls out from OPEC’s cartel

Ahead of a crucial oil cartel and associates meeting, Qatar has announced plans to pull out of Organization of petroleum Exporting Countries (OPEC).

The decision came after Qatar, one of OPEC’s smallest producers but the world’s largest liquefied natural gas exporter, reviewed ways to enhance its role internationally and plan long-term strategy, including focusing on its gas industry,

“Qatar has decided to withdraw its membership from OPEC effective January 2019 and this decision was communicated to OPEC this morning,” Saad al-Kaabi, the country’s energy minister said on Monday, adding that Qatar would still attend an OPEC meeting in Vienna this week.

Qatar joined OPEC in 1961, becoming the first country to unite with the cartel after its creating a year earlier. It’s the first Middle East country to ever leave OPEC (although Ecuador and Gabon left, only to re-join; and Indonesia have suspended its membership).

Qatar is the 11th-biggest oil producer in OPEC; at about 610,000bpf in October Qatar is world’s largest exporter of LNG.

OPEC and non-OPEC members are due to meet in Vienna, Austria on Thursday, with the aim of reaching an accord over possible output cuts.

Oil prices have fallen more than 25 percent since climbing to a four-year peak in early October, amid intensifying concerns of oversupply and worries over slowing economic growth.