Qatar leaves OPEC after more than half of a century

Daily Analysis - 04/12/2018

Qatar is world's largest producer of liquefied natural gas

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Qatar published its intentions to depart from the Organization of the Petroleum Exporting Countries OPEC Monday. The announcement finds us only a few days before a critical meeting among the powerful oil cartel and its partners. Qatar's Energy Minister Saad al-Kaabi said at a news interview that his country will depart from OPEC on the first of January 2019, completing a membership that has lasted for fifty-seven years. This statement arrives after Qatar examined methods that it could enhance its global position and shape its long-term policy.

While Qatar is one of OPEC's least important oil producers, particularly if compared to Saudi Arabia, nonetheless it is one of the world's biggest producers of liquefied natural gas. The country's energy minister said Monday that the move represents a "technical and strategic" change, Reuters reported and was not politically motivated.

Stocks in Asia seen higher


On Monday equities in Asia were seen higher after the Xi Jinping and the United States of America President Donald Trump allowed a temporary trade peace between the United States and China to come into effect.

The Chinese exchanges were strictly watched while waiting for a decision to stop the continuing trade war between Washington and Beijing. While waiting we witnessed strong profits on the particular day. The Shanghai Composite advanced 2.54% to end at around 2,654.78 as the Shenzhen composite raised about 3.2% to finish the trading day at about 1,381.54.

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China-US trade peace weakens dollar


Yesterday the greenback generally declined while currencies beaten by trade anxieties among the US and China got a recovery after administrators from the two nations announced a break on tariffs.

China's yuan and some trade-dependent currencies initiated powerful increases versus the USD while traders exchanged the safe-haven U.S. currency and purchased more risky assets.

The United States and China agreed to a pause in their painful trade conflict on Saturday after important discussions in Argentina between U.S. President Donald Trump and Chinese President Xi Jinping.

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US crude grows 4%


On Tuesday the U.S. light crude oil finished the trading session at $2.02, which is about 4 %, higher. Brent crude went rose $1.66, to $61.12.

Both benchmarks rose by more than 4% earlier in the session.

On Monday oil prices climbed after the United States and China consented to a 3-month break in their trade conflict and Canada's Alberta region directed a production cut, as OPEC is looking to reduce supply.

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