FT: Persian Gulf countries will halt hydrocarbon exports in the coming weeks, significantly increasing energy prices.
All energy producers in the Persian Gulf will halt hydrocarbon exports within a few weeks if the conflict with Iran continues and the price of oil reaches $150 per barrel. This was stated by Qatar's Minister of Energy Saad al-Kaabi in an interview with the Financial Times, as reported by Reuters.
According to him, all those who have not yet declared force majeure will do so in the coming days if the situation does not change. All exporters in the Persian Gulf region will be forced to act this way. Additionally, the minister believes that the U.S.-Iranian conflict will impact GDP growth worldwide. Energy prices will rise, there will be a shortage of certain goods, and many factories will be unable to ensure supply.
He also clarified that even if the confrontation in the Middle East ends immediately, Qatar will need several weeks to several months to return to a normal supply cycle.
All of this could significantly increase energy prices, which will lead to rising prices for other goods and services worldwide.
It is forecasted that after the suspension of operations by the Qatari oil and gas company Qatar Energy, it will take at least about 30 days to restore LNG production in the country. Two weeks will be needed to restart the plant in Ras Laffan, and another two weeks will be required to return to previous capacities.
