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Earlier on Monday, Qatar announced that it was withdrawing from OPEC effective January 1, 2019, and had informed OPEC of this decision, Qatar Petroleum said.

Oil prices shot higher on Monday after the United States and China agreed a 90-day truce in their trade conflict and ahead of a meeting by producer club OPEC this week that is expected to result in a supply cut. However, the current state of affairs won't make the country's position worse, as Qatar is "isolated anyway". Qatar has said the boycott is damaging for its national sovereignty and has denied the claims.

"Qatar is a tiny oil producer - accounting for less than two percent of the cartel's output - but it is one of the world's largest LNG producers and as such membership of OPEC doesn't really deliver the benefits that it does to other member nations", Kelty added.

The cartel's largest member, Saudi Arabia, along with three other countries, has cut trade and transport ties with Qatar for the past 18 months, accusing Qatar of supporting terrorism and the Saudis' largest regional rival, Iran. OPEC and non-OPEC oil producers will hold a ministerial meeting December 6-7.

The oil-rich nation of Qatar wants out of OPEC.

"Riyadh made a series of demands aimed at reining in its ambitious smaller neighbor, including that Qatar close down the Al Jazeera news channel", as NPR's Peter Kenyon reports.

More news: Oil prices fall as OPEC meeting remains ‘clouded by uncertainty’

Qatar's oil production is only around 600,000 bpd, but it is the world's biggest exporter of liquefied natural gas (LNG).

Al-Kaabi said the gulf state had reviewed ways to enhance its role internationally, including focusing on its gas industry.

There's also been a shift in the way energy exports are shared from Qatar.

There was no comment from Vienna-based OPEC, which meets Thursday to discuss possible production cuts. It joined back in 1961.

He said the decision reflect a growing anger by producers against what he described as the unilateral approach adopted by the Joint Ministerial Monitoring Committee (JMMC) - which is led by OPEC heavyweight Saudi Arabia and global major producer Russian Federation - to decide over production cuts. Oman is also a member of the six-member Gulf Cooperation Council (GCC) alongside Qatar, Saudi Arabia, Kuwait, the UAE, and Bahrain. "They debated 'what does the withdrawal mean to OPEC and global energy market and to Qatar?", market sources told The Peninsula.

The decision was announced on Monday by the country's Energy Minister, Saad al-Kaabi.


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