Qatar to pull out of OPEC amid Saudi boy­cott of capi­tol city

The Oneida Daily Dispatch (Oneida, NY) - - Weather -

DUBAI, UNITED ARAB EMI­RATES >> The Arab na­tion of Qatar an­nounced Mon­day it will with­draw from OPEC in Jan­uary, a re­buke of the Saudi-dom­i­nated car­tel as the king­dom’s boy­cott of Qatar con­tin­ues un­abated.

The sur­prise dec­la­ra­tion could make Qatar the first Mid­dle East na­tion to leave the car­tel since its found­ing in 1960. It again in­jects pol­i­tics into an or­ga­ni­za­tion that long has in­sisted it is non­par­ti­san.

Although con­tribut­ing only a frac­tion of OPEC’s over­all pro­duc­tion, Qatar’s de­ci­sion puts the vi­a­bil­ity of the car­tel in ques­tion. Once mus­cu­lar enough to grind Amer­ica to a halt with its 1970s oil em­bargo, OPEC needed non-mem­bers like Rus­sia to push through a pro­duc­tion cut in 2016 af­ter prices crashed be­low $30 a bar­rel.

In June 2017, Bahrain, Egypt, Saudi Ara­bia and the United Arab Emi­rates cut ties to Qatar. They say the cri­sis stems from Qatar’s sup­port for ex­trem­ist groups in the re­gion, charges de­nied by the na­tion.

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