Brent crude prices turned up. At the ICE exchange trade in London, Crude Oil Futures February 2019 price has risen by almost 5% to reach $62.37/barrel.
Oil quotes are rising amid news that Russia and Saudi Arabia agreed to extend into 2019 their deal to manage the oil market, known as OPEC+. On December 1, Russian President Vladimir Putin announced the extension. Later, OPEC’s president, U.A.E. Energy Minister Suhail Al Mazrouei, said OPEC+ would reach an agreement over a cut in production for 2019 when they meet at the OPEC+ Ministerial Meeting in Vienna on December 6-7. Technical teams are working on the level of the cuts necessary and the reference baseline for the reduction, he said.
Against this background, a shock decision of Qatar to quit OPEC after 57 years of membership sounded like a bolt from the blue. Qatar is withdrawing from OPEC as of January 01, 2019, Saad al-Kaabi, the country’s Energy Minister said. According to the Qatar State Minister, the withdrawal decision reflects Qatar’s intent to focus its efforts on developing its natural gas industry and its liquefied natural gas production; besides, the volume of oil production was small”.
After this decision, Brent Crude Oil Futures February 2019 price has slightly decreased, but in 20 minutes the quotes won back and reached again the previous level.