Qatar to withdraw from OPEC

• Qatar has decided to quit the bloc of 15 oil-producing countries from 1 January 2019 that account for a significant percentage of the world's oil production.
• The withdrawal decision reflects Qatar's desire to focus its efforts on plans to develop and increase its natural gas production from 77 million tonnes per year to 110 million tonnes in the coming years.
• Qatar is the first Gulf country to leave the bloc of oil-producing countries.

About OPEC:

• The Organization of the Petroleum Exporting Countries (OPEC) is a group of oil-producing nations that was first established in Baghdad, Iraq, in 1961. OPEC is one of the most powerful international organizations in the world and was a major player in the shift towards state control over natural resources.
• Currently, the Organization has a total of 15 Member Countries. The current OPEC members are the following: Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, the Republic of the Congo, Saudi Arabia, United Arab Emirates, and Venezuela. From 1 January 2019 , Qatar will no longer a member of OPEC

Status of Qatar in Energy market:

• Qatar is the world's biggest supplier of liquefied natural gas (LNG), producing almost 30 percent of the world total. Qatar is a small player in OPEC, and it is wise decision to invest on its strength rather then constitute to be having a little impact in OPEC.
• The decision to pull out after more than five decades comes at a turbulent time in Gulf politics, with Doha under a boycott by former neighbouring allies including Saudi Arabia for 18 months.
• Since June 2017, OPEC kingpin Saudi Arabia — along with three other Arab states — has cut trade and transport ties with Qatar, accusing the country of supporting terrorism and its regional rival Iran. Qatar denies the claims, saying the boycott hampers its national sovereignty.
• Qatar’s oil production is around 600,000 barrels per day, making it the world’s 17th largest producer of crude. It also only holds around two percent of the world’s global oil reserves.
• Since 2013, the amount of oil Qatar produced has steadily declined from about 728,000 barrels per day in 2013 to about 607,000 barrels per day in 2017, or just under two percent of OPEC's total output.
• Qatar joined OPEC in 1961, one year after the organisation's establishment.

 Qatar-Gulf Countries Rift

• There was a previous diplomatic rift in 2014 between Qatar and other Gulf countries. Saudi Arabia, the UAE and Bahrain pulled out their diplomats, claiming that Qatar supported armed groups. However, the border remained open and Qataris were not expelled.
• Tensions with Qatar have generally revolved around its alleged support for political Islamic movements, such as the Muslim Brotherhood, as well as complaints about the Al Jazeera Media Network, which is based in Doha.
• These tensions were possibly exacerbated by the Arab Spring in 2011, when Saudi Arabia and Qatar were seen as backing different sides.
• In 2017, Bahrain and Egypt both gave Qatari embassies 48 hours to implement their respective departure orders, while recalling their own diplomat. The UAE and Saudi Arabia gave Qatari citizens who were residents in or visiting the UAE two weeks to depart and ordered their citizens in Qatar to return.Saudi Arabia went further, withdrawing Qatari troops from the Saudi-led war in Yemen Saudi Arabia, the UAE, Bahrain and Egypt have also closed land, air and sea passage to all vessels and vehicles coming from or going to Qatar.
• The blockade has disrupted business, education and transport links among Qatar and its neighbours, while also tearing apart families whose members held different passports. By mid-September, Qatar's National Human Rights Committee had received 3,346 complaints, 620 of which were from families affected by the measures.