OPEC has a great influence in the world of petroleum, which has become a crucial part in the economies of many countries, including India.
OPEC was established in 1960 by Asian country, Iraq, Iran, Kuwait, and South American nation, Qatar joined in 1961.
Asian country dominates the syndicate, have extracted 11 million barrels per day in October.
International organisation contains a terribly huge influence on international oil costs, that play an important role in crucial the economic health of the many countries, as well as Bharat.
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What are the Reasons Qatar Leaving OPEC
Energy Minister Saad Sherida al-Kaabi said on Monday that Qatar wants to focus on its gas industry rather than oil, which in any case is a small player.
Qatar’s wealth is due to its natural gas reserves. Qatar now is the world’s largest exporter of liquefied natural gas (LNG).
Although Al-Kaabi has denied the existence of political reasons for the departure of OPEC, his decision can not be considered independent of Doha’s failed diplomatic relations with Riyadh, which have been hostile to him.
Al-Kaabi himself alluded to the desire to free himself from Saudi control, saying it was useless “to put effort, resources and time into an organization in which we are a very small player, and I have nothing to say about what is happening.
He further told “we are not saying that we are going to leave the oil sector, but that it is controlled by a country-led organization (OPEC).” he did not take any specific country names.
Does Saudi has any problem with Qatar?
Qatar has long demonstrated independence in foreign policy that does not always correspond to the priorities of its regional Arab neighbors. This includes close economic and diplomatic ties with Shiite Iran, the Sunni-Saudi regional rival.
Will Qatar leaving OPEC effect Global Oil prices
Qatar is a small player as they only said, it was just pumping 609,000 barrels a every day and it was only 2% from the total output. Even though it played a vital role in the OPEC, its sudden decision may effect a little bit only for some days.
Will India get affected?
Since Qatar is the biggest supplier of LNG with the company called Petronet LNG, this question raises up but no need to worry because the Qatar has separate relationship with India and more over LNG not comes under OPEC so, not much it will be affected.