Expert: "Qatar’s OPEC withdrawal will have less impact on the world oil market"

Baku. 3 December. REPORT.AZ/ "Qatar’s OPEC withdrawal will have less impact on the world oil market, a research worker at the Russian Institute of Energy, expert of the Institute of Pricing and Regulation of Natural Monopolies of the National Research University Higher School of Economics Dmitry Grushevenko said while commenting on Qatari Minister of Energy Saad Sherida al-Kaabi’s statement regarding OPEC withdrawal.

The expert said that the prices are basically equal and bigger players should have to react to get the price out of this zone.

"OPEC, as well as OPEC+ deal are an oil history, while Qatar prefers gas production (primarily, LNG), not oil. Oil is not so important for them. Along with this, as a result of development of spot trade with gas, the oil and gas markets break down in the recent years. Even the prices of these two energy carriers are not linked to each other as were before," Grushevenko said.

A research worker at the Russian Institute of Energy, expert of the Institute of Pricing and Regulation of Natural Monopolies of the National Research University Higher School of Economics Dmitry Grushevenko

Qatar prefers gas production. Oil is not so important for them.

Dmitri Qruşevenko

Dmitry Gruschoveko, a research worker at the Russian Institute of Energy, expert of the Institute of Pricing and Regulation of Natural Monopolies of the National Research University Higher School of Economics

While speaking about possible reasons for Qatar’s OPEC withdrawal, Grushevenko said that the possible reasons lie with the political elite of the country which is planning to enhance LNG production and there is some concern that their participation in the cartel deals will cause decline in investment attraction for American shareholders: "Qatar needs the American investors for implementation of LNG projects with high technology and capital capacity. Therefore, Qatar 'sacrifices' the vague opportunity to have an impact on oil market  for a more profitable gas business," the expert noted.