QATAR intends to withdraw from the Organization of the Petroleum Exporting Countries to focus on its natural-gas development, its energy minister said Monday.
The decision comes as the organization is set to meet Thursday to decide on output, as it struggles with major challenges such as U.S. pressure from U.S. President Trump and tensions between members.
Saad Al-Kaabi, Qatar energy minister said the country would withdraw from the organization by January 2019 at a press conference Monday, state-run company Qatar Petroleum said on its Twitter account.
Qatar announces it was withdrawing from the Organization of Petroleum Exporting Countries “OPEC” effective 1 January 2019.
— QatarEnergy (@qatarenergy) December 3, 2018
An official at OPEC’s secretary in Vienna confirmed it was aware of the decision.
The 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,” he was quoted as saying.
The withdrawal comes as Doha has faced an economic blockade from OPEC’s kingpin and neighbour Saudi Arabia over allegations it finances terrorism—which it has denied.
Qatar is one of OPEC’s smallest producers, with an output of about 800,000 barrels a day, making its impact on the group’s market share limited. But while members such as Indonesia have left in the past, the Emirate is one of the group’s oldest participants, having joined OPEC in 1961, and one year after its creation.
But Qatar’s pull-out after 57 years also comes as the organization is facing significant headwinds. President Trump has criticized the group for increasing prices and threatened to support antitrust legislation against the OPEC.