Doha exits OPEC to take a swipe at Riyadh
On Monday, Qatar announced that it will leave the Organization of the Petroleum Exporting Countries on Jan 1, ending its 57-year membership. What has prompted Doha to exit OPEC? And what impact will it have on the bloc and the oil market? Two experts share their views on the issue with China Daily’s Liu Jianna. Excerpts follow: largest exporter of liquefied natural gas. The gas price, of course, is linked to the oil price. Being tied together with other oil producers, led by Saudi Arabia and Russia, and thus being forced to reduce supply is not conducive to Qatar’s economic growth.
In the long run, oil prices are expected to dip further as Qatar may increase the supply of oil and gas on a large scale while demands are expected to remain the same or decline. Which makes Qatar’s exit from OPEC different from other geopolitical events that have largely driven up oil price.
Generally speaking, the future of OPEC rests in the hands of major Gulf countries and the US. Actually, Qatar’s exit has reduced the possibility of OPEC’s disintegration as Saudi Arabia will now have a greater say in the Qatar-less cartel, to the US’ delight.
Sun Xia, an associate research fellow at the Institute of International Relations, Shanghai Academy of Social Sciences