Qatar Warns That Middle East War Could Bring Down The Economies Of The World
QATAR WARNS: Middle East War could ‘bring down the economies of the world’
Qatar’s energy minister has warned that the Iran conflict could “bring down the economies of the world” in a new energy crisis.
Saad al-Kaabi predicted that all exporters in the Middle East would shut down production within weeks as a result of the war.
He forecast this would nearly double the price of a barrel of oil to more than $150, dragging down growth in global economies.
Mr Kaabi said it would take Qatar “weeks to months” to ramp up delivers to normal levels even if the war ended immediately.
Qatar, the world’s second-largest producer of liquefied natural gas plant (LNG), was forced to halt output at its Ras Laffan plant following Iranian drone strikes.
It declared force majeure this week, excusing it from fulfilling its contractual obligations after the suspension of production.
Mr Kaabi said this would hit Europe as buyers race to outbid each other for the gas that is available on the market. Qatar supplies around 1pc of UK gas but is a major supplier to Asia.
European natural gas prices have this week risen at their fastest pace since Russia’s invasion of Ukraine in 2022, which triggered a global energy shock.
“This will bring down the economies of the world,” Mr Kaabi told the Financial Times.
“If this war continues for a few weeks, GDP growth around the world will be impacted. Everybody’s energy price is going to go higher.
“There will be shortages of some products and there will be a chain reaction of factories that cannot supply".
No comments
Post a Comment