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Crude oil could drop to $30 again as oversupply may persist: Fesharaki

By dailymail / Published on Wednesday, 14 Jun 2017 05:18 AM / No Comments


Fesharaki believes the diplomatic crisis engulfing Qatar is unlikely to have a long term or substantial impact on global oil prices.

“It’s not threatening any production, so the markets have yawned,” he said.

Several Saudi-led Arab states abruptly cut off ties to tiny Qatar earlier this month.

Saudi Arabia has issued demands of Qatar, including ending relations with Iran, breaking all ties to the Muslim Brotherhood and expelling all members of Hamas, according to an Al Jazeera report. It also demanded Qatar shut down broadcaster Al Jazeera, which came under cyber attack last week.

The catalyst for the rift was an alleged statement by Qatar’s emir that criticized Saudi Arabia and President Donald Trump, who recently visited Saudi Arabia in his first foreign trip, agreeing to new military contracts and a broader economic relationship.

Doha denies allegations that it has supported terrorism.

Turkey, a strong ally of Qatar, will send its foreign minister to Doha on Wednesday and possibly to Saudi Arabia, as it looks to end the feud.

“I don’t see this as a factor impacting the oil market unless you get into a military confrontation – which is very unlikely,” he said. “With Turkey now taking troops to Qatar and the Iranians supplying food and water, I think the stakes for the Saudis have become much bigger. If they escalate this further, then it can get very ugly.”