Saudi energy minister Khalid A. Al-Falih has said that Qatar’s impact on oil is insignificant. Speaking in an interview with CNBC, the minister said that isolating Qatar from the gulf nation’s oil sector will have no meaningful impact on the oil production capacity of the region. The Energy, Mineral and Industry minister told CNBC that Qatar will definitely be expected to adhere to the regulations made by OPEC regarding the production cut extension, but its production will not be significant.
“Inside energy markets, there has been no change,” said the Energy minister after the end of the meetings in Kazakhstan which were held over the weekend. He believes that the changes in the inventory data caused by the recent gulf crisis will have an insignificant on the oil market.
Saud Arabia led several Arab states to cut off diplomatic ties with Qatar accusing the tiny nation of being in the forefront of funding terrorist activities and subsequently distorting the stability within the region. It was an abrupt move that sent the tiny nation into shockwaves and immediately caught the attention of the international community. Saudi Arabia, Egypt, Bahrain and other Arab nations have chosen to loosen their diplomatic ties with Qatar and imposed a land, sea and air blockade.
Meanwhile, Turkey has condemned the move and called it an act that violates Islam values. The Turkish government has pledged to rally behind the tiny Arab nation adding that it will send food supplies and military troops in case the need arises either in the near future or distant future.
Saudi Arabia has announced that it will only restore the diplomatic ties with Qatar once the country meets all its demands. The country has made a list of demands which it expects Qatar to meet at all costs. Among the demands are cutting off ties with Iran, the Muslim Brotherhood and dismissing the members of Hamas from the country. The Saudi government is also demanding that Qatar should shut down Al Jazeera which recently suffered a cyber attack. This information is in line with a report which was released by Al Jazeera.
What fuelled the rift is a statement which was alleged to have been made by Qatar’s emir. According to the statement, the emir criticized President Donald Trump and his Saudi Arabian counterpart after the two parties agreed on new military terms and a more concrete economic relationship.
So far, the recent rift between the gulf nations and Qatar has not had a significant impact on energy markets. However, last week, two UK bound Qatari LNG shipments suddenly changed their course in the gulf of Aden. This has raised speculations that the gulf crisis may eventually begin to have a meaningful impact on the oil market in the long run. But, Al-Falih still insisted that the impact that this row may have on the market is still insignificant adding that Qatar’s overall cut in the global oil production output is rather insignificant.