Political tensions in the middle-east are at all time high. In a major announcement, Egypt, Saudi Arabia, Bahrain and UAE will soon be withdrawing diplomatic missions from Qatar. Following the big news, the benchmark Brent crude futures prices rose over 1 percent to well over $50 per barrel.
Oil Reserves In Qatar
Liquefied natural gas and Petroleum are the main foundation of Qatar’s economy. More than 70% of total government revenue and 85% of export earnings comes from these sources. Qatar’s proved reserves of natural gas exceed 7000 km3, more than 5% of the world total and the third-largest reserves of any country in the world.
Source: India Times
Effect on Petrol and Diesel Prices In India?
Meanwhile, Petronet LNG, an Indian oil, and gas company formed by the government of India has issued a statement in which they stated that it did not expect any impact on gas supplies from Qatar. According to the Business Standard, R.K. Garg, head of finance at Petronet, told Reuters, “I don’t think there will be any impact on it. We get gas directly from Qatar by sea.”
India buys 8.5 million tons a year of liquefied natural gas (LNG) from Qatar.
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