At present, public attention is focused on the situation around Qatar. Four Middle Eastern countries have already announced the severance of diplomatic relations with Qatar. They are Saudi Arabia, Egypt, Bahrain and the United Arab Emirates. It is planned not only to withdraw diplomatic staff from Qatar, but also to block any regular transportation.
Qatar’s support of such terrorist organizations as Al-Qaeda and Islamic State has led to such a serious conflict.
At the moment, tension in the region has not caused interruptions in oil shipment. However, experts do not exclude the risk of interruption in the export of black gold.
News from the Middle East caused an increase in oil quotations. Thus, the drop brought about by the news from the USA (about the increased production as well as the US withdrawal from the Paris climate agreement) has stopped.
The news triggered a decline in Qatar’s stock market. Therefore, this morning the stock indexes QE All Share, Qatar Ex and QE TR have lost more than 7%.
The question of a deal between the OPEC and non-OPEC countries concerning the reduction of oil production remains open. Experts suggest that the conflict will not become an obstacle to make the transaction. Their forecasts are based on the fact that Iran and Saudi Arabia were able to agree despite the breakdown in diplomatic relations in 2016.
The trend towards the higher oil futures will continue.
The material was prepared with the participation of Marina German,
a leading analyst of the brokerage company CT Trade