Qatar to leave Opec

Desert_oil_pumpsQatar, the world’s largest exporter of liquefied natural gas (LNG), is set to withdraw from Opec after more than 60 years as a member of the oil cartel. The country has been embroiled in a diplomatic dispute for more than a year with its neighbouring states and has been subjected to a trade and travel embargo. But Qatar’s oil minister, Saad al-Kaabi who was appointed as part of a ministerial reshuffle in November, has insisted that the decision is not linked to the ongoing political tension but is instead linked to its desire to focus more on gas production. Qatar is one of the smallest oil producers in Opec, pumping 609,000 barrels a day. However it is looking to boost is LNG production from 77 million to 110 million tonnes a year. While not everyone is convinced that the decision to leave Opec is unconnected to the political dispute, it is unlikely to have a big effect on Opec’s output. Analysts have also played down the potential impact on Qatar’s credit rating, according to ‘’Qatar’s reliance on LNG means that OPEC’s decisions on oil supply and their implications for oil prices will continue to have an indirect impact on Qatar’s government and export revenue,” said Alexander Perjessy, Vice-President- Senior Analyst at Moody’s. “For Qatar to no longer be part of these decisions will not change the sensitivity of its credit metrics to oil price fluctuations.” ©2018 funds global mena

Executive Interviews

INTERVIEW: ‘Financing is the blood of Iran’s economy’

Jan 04, 2019

Amid a fresh wave of American sanctions, Romil Patel spoke to Meysam Hamedi, director of financial markets and instruments at Iran’s Securities & Exchange Organization (SEO).

INTERVIEW: Totally mega

Jun 13, 2018

In 2016, global consulting firm PWC forecast the emergence of five global ‘megatrends’ in the next two decades. Stephen Anderson, its Middle East clients and markets leader, talks about their...


ROUNDTABLE: Hooked to the global caravan

Jan 04, 2019

With the MENA region at a tipping point, our panellists talk about economic diversification, the impact of regulation and the delayed Saudi Aramco listing. Chaired by Romil Patel in Dubai.

MENA ROUNDTABLE: ‘The story is about reforms’

Jun 13, 2018

Our cross-industry panel discuss the positive backdrop in Egypt, the Dana Gas controversy and the potential index upgrades of Saudi Arabia and Kuwait. Chaired by George Mitton in Dubai.