Saad Sherida Al-Kaabi, the country's minister of state for energy, explains that the withdrawal decision reflects Qatar’s desire to focus its efforts on gad production.
Qatar, energy-rich Arab nation has announced its intention to leave the Organisation of Petroleum Exporting Countries (OPEC) on January 1, 2019.
This will end the small rich energy nation’s 57 years of membership with the oil cartel.
Qatar Petroleum, the country's state oil company, made this known in a series of tweets on Monday, December 3, 2018.
"The withdrawal decision reflects Qatar's desire to focus its efforts on plans to develop and increase its natural gas production."
The tweets quoted Saad Sherida Al-Kaabi, the country's minister of state for energy affairs, as saying that Qatar has informed OPEC about its decision to withdrawal from the group.
“Qatar has worked diligently during the past few years to develop a future strategy based on growth and expansion, both in its activities at home and abroad.
“Achieving our ambitious growth strategy will undoubtedly require focused efforts, commitment and dedication to maintain and strengthen Qatar’s position as the leading natural gas producer, ” the minister said in a series of tweets seen by Business Insider Sub-Saharan Africa.
Al-Kaabi explains further that the withdrawal decision reflects Qatar’s desire to focus its efforts on plans to develop and increase its natural gas production from 77 million tons per year to 110 million tons in the coming years.
The Oil group which is dominated by oil-rich Saudi Arabian bloc, is yet to respond to Qatar withdrawal.
Nigeria, other OPEC members and non-OPEC members meet on Thursday
Nigeria and other members of OPEC and non-OPEC members are scheduled to meet in Vienna, Austria, on Thursday, over possible output cuts in order to prop up tumbling oil prices.
Nigeria’s 2019 budget pegged crude oil price at $60 per barrel at a production rate of 2.3 million barrels per day, though not yet ratified by the lawmakers. The decision of the oil cartel may affect Africa’s biggest market largely dependent on oil revenue. The country slipped into its worst economic recession in 2016 owing to fall in global oil price.
The global crude oil prices have fallen more than 25% since its recorded peak in October.
Crude oil price trade above $60 per barrel on Monday
On Monday, International benchmark Brent crude rose 5.3% to $62.60 per barrel while West Texas Intermediate (WTI) rose $53.85, more than 2.92% higher.
Source: BUSINESS INSIDER