"Qatar has made a shock decision to quit Opec after 57 years of membership," say Simeon Kerr and Anjli Raval in the Financial Times. The small Gulf state says the move will allow it to concentrate on gas production. Qatar, the world's biggest exporter of liquefied natural gas, has been boycotted by some of its Arab neighbours over allegations that it funds terrorism. So its departure might tell us more about the geopolitical climate in the Middle East than the direction of the oil price.
Qatar's influence on Opec always looked limited in any case. It's "Opec's 11th biggest oil producer so is one of the smallest in the cartel, comprising less than 2% of Opec's output", says the BBC. Opec and Russia have been contemplating a small cut to production to shore up an oil price that's fallen off a cliff in the past few weeks, from $87 a barrel in early October to $61 in November.
Start your trial of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.