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Qatar left OPEC, markets are calm
Written by: PaxForex analytics dept - Wednesday, 02 January 2019 0 comments
Qatar, which has been a member of OPEC for almost 60 years, left the organization on January 1. The market calmly reacted to this event, and experts believe that there is a significant likelihood that Qatar will be followed by other countries. One of the main arguments for quitting the oil cartel was the embargo on trade and travel to the country by neighboring Arab states.
Qatar did not have much weight in OPEC, the state extracts only about 2% of the total production of OPEC. Also, the country now has rather tense relations with one of the main members of the cartel - Saudi Arabia. Under these conditions, the country's desire to regulate the extraction, production and sale of “black gold” is normal.
Qatar’s output from OPEC will affect the calculation of the cost of the cartel’s oil basket, as Qatar Marine’s oil grade is included in this calculation.
in recent years to reduce, increase and re-reduce oil production, have confirmed the effectiveness of the organization as the most important regulator of the market, for many it is clear that the members of the organization have different weight, and everything is determined by the leaders.
In the meantime, following the results of the last year, the average daily oil production in Russia in December grew by 4.5% in annual terms, by 0.7% in monthly terms, to 11.45 million barrels per day.
The growth rate occurred before the entry into force of new agreements between OPEC + countries, which again will begin to reduce oil production.
In general, in 2018, the average daily oil production in Russia grew by 1.6% to 11.16 million barrels per day.