Gulf Oil and Gas accountACCOUNT

Saudi Arabia, Bahrain, UAE and Egypt Cut Diplomatic Ties with Qatar

Source: www.gulfoilandgas.com 6/14/2017, Location: Middle East

Share |
Since Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic ties with Qatar on Monday 5 June 2017, and moved to close off access to the Gulf country, there have been a few developments.

UAE, Saudi Arabia and Bahrain, the Egyptian government has banned all vessels carrying the Qatari flag from passing through Egyptian ports. Shipments from the US or the EU to Qatar are not prohibited.

This has further impacted the oil and gas sector, particularly with LNG trade and Qatar being the world's biggest LNG producer - at least one tanker has had to change course and UK gas prices have spiked. Nevertheless, analysts do not see an interruption in supply in the LNG market.

Last week, Qatar’s stock market shrank by about US$11 billion in value and the Doha index tumbled 7.1 percent, while the Qatari riyal has been falling on worries of capital outflows. The regional Central Banks have started to respond: the UAE Central Bank issued instructions for freezing accounts, deposits, investments of designated terrorists, terror organizations, and increased "know your customer" requirements for dealings with certain Qatar-based banks. Bahrain has taken similar measures. The Saudi Arabian Monetary Agency has ordered lenders in the country not to increase their exposure to any Qatari clients.

Turkey has approved bill allowing troops to be deployed in Qatar and approving an accord between the two countries on military officer training cooperation, and Qatar is in talks with Iran and Turkey to secure food and water supplies.

As Qatar grapples with deepening diplomatic isolation, Japanese liquefied natural gas buyers are pushing the world’s largest seller for cheaper supplies. Both Jera Co., one of the biggest LNG purchasers, and Tokyo Gas haven’t decided if they’ll sign new deals with Qatar to replace current contracts that begin expiring in 2021, according to executives from both companies. The buyers are insisting on less-expensive cargoes and greater purchasing flexibility from the Middle East nation, which relies on oil and gas for about half its gross domestic product.

The demands from Japan, its largest LNG customer, may add pressure on Qatar after neighbors including Saudi Arabia severed diplomatic ties and cut travel by land, sea and air. The hard-nosed bargaining tactics aren’t related to the diplomatic tensions, but the result of a global LNG glut that’s forcing producers to offer concessions, which sellers such as Total and Anadarko Petroleum signal may be necessary to lock up customers.

Financials and Investment News in Qatar >>

Australia >>  10/18/2017 - Norwest Energy NL has received irrevocable commitments from sophisticated and professional investors for a placement of up to approx. 250 million shar...
Norway >>  10/18/2017 - The shares purchased by DNB on behalf of Statoil ASA on 13 October 2017 for use in the group's Share Saving Plan have on 18 October 2017 been distribu...

Azerbaijan >>  10/17/2017 - SOCAR paid AZN 117 million 330 thousand to the State Budget for September of the current year. In general, for January-September 2017, SOCAR transferr...
Austria >>  10/16/2017 - OPEC crude for 2018 was revived up by more than 0.2 mb/d from the previous month to 33.1 mb/d representing an increase of 0.3 mb/d over 2017. ...

United Kingdom >>  10/16/2017 - NU-Oil and Gas plc was awarded Best Performing Share at the recent AIM Awards 2017. Best Performing Share is a factual award based on share price perf...
United Kingdom >>  10/16/2017 - BP Midstream Partners LP (“BP Midstream Partners” or the “Partnership”), a limited partnership formed by an indirect, wholly-owned subsidiary of BP p....

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Qatar Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 |

More News

 

Oil & Gas Companies in Qatar >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Privacy Policy.