#Qatar Leaving OPEC Is An Ominous Sign For OPEC - Bloomberg

Qatar Leaving OPEC Is An Ominous Sign For OPEC - Bloomberg:

The immediate question raised by Qatar leaving OPEC is, of course, what to call this? Qatarexit, or even Qatexit, sound wrong. Qatar-ta-for-now has a nice ring to it, even if it’s a tad unwieldy. Maybe just go with Qatout.

While that one is a little aggressive, it at least conveys one of the factors likely behind the move. Saudi Arabia has been gunning for Qatar, launching a blockade last year aimed at bringing the Gulf state to heel on issues such as its relations with Iran. With OPEC’s de facto leader having pushed Qatar out into the cold already, the diplomatic benefits of membership can hardly seem that compelling in Doha.

In purely mathematical terms, Qatar’s decision to leave makes little difference: It accounts for less than 2 percent of OPEC’s crude oil output. The country’s clout in energy markets stems from something outside of OPEC’s purview, namely Qatar’s status as the world’s largest exporter of liquefied natural gas. Yet the symbolism of a long-standing, Middle Eastern member leaving is inescapable.