Qatar case not to impact oil market in longer term - experts

Qatar case not to impact oil market in longer term - experts

Baku, Azerbaijan, June 6

By Leman Zeynalova – Trend:

Qatar is no a major oil producer itself, so in that sense, the diplomatic tension with this country has little effect, Sijbren de Jong, analyst at The Hague Center for Strategic Studies and expert in energy security told Trend June 6.

“General tension in the region is always reflected in oil prices, at least in the short term. In the longer term, however, market fundamentals are telling a different story,” said the expert. “We still deal with oversupply and resurgent shale in the US.”

Emma Richards, oil and gas analyst with BMI Research told Trend that she believes, the impact of this situation will be quite limited, although risks remain, should tensions escalate further.

“The main concern is around the disruption of exports via the Straits of Hormuz, but the straits pass through Omani and Iranian territorial waters and are protected under international maritime law,” she said.

As long as exports continue as normal, there won't be any impact on supply and prices should come away relatively unscathed, according to Richards.

The spat began after Qatar’s state-run news agency, QNA, released remarks attributed to ruling Emir Tamim bin Hamad al-Thani, in which he criticized other Gulf leaders and called for an easing of tensions with Iran. QNA has denied that the comments were made by the Emir, claiming that they were the result of a cyber attack. But this hasn’t washed with Saudi Arabia and its allies. They argue that the comments highlight Doha’s close ties with Iran and reinforce their long-held concerns over Qatar’s support for terrorism.

Saudi Arabia, Egypt, the United Arab Emirates, Yemen, Libya, Bahrain, and Maldives have severed diplomatic ties with Qatar, accusing it of fueling extremism and terrorism.

Qatar says move is "unjustified" and says it carries out its duties in the fight against terrorism.

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Follow the author on Twitter: @Lyaman_Zeyn

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