IAEA says Arab countries’ rift with Qatar causing operational problems

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UNITED NATIONS, June 15 (APP): The ongoing dispute between several
Middle East countries and Qatar is causing “logistical headaches,” the International Energy Agency (IEA) has warned.
In its latest oil market report, the IEA noted that the political
dispute hasn’t yet disrupted supplies but it has become an operational problem for lifters of Qatari crude, condensate and LNG (liquefied natural gas).
In early June, Saudi Arabia, Bahrain, Egypt and the United Arab Emirates
(UAE) broke off relations with Qatar and suspended all land, air and sea traffic, accusing it of supporting terrorism.
“Abu Dhabi swiftly enforced a ban on oil tankers linked to Qatar calling
at ports in the UAE, which could lead to a backlog of cargos and increased shipping costs,” the IEA said in the report.
“Qatar pumps just over 600 thousand barrels a day of crude and exports
some 500 thousand barrels a day, almost exclusively to Asia. Buyers often co-load cargoes from elsewhere in the Gulf, typically sold as 500,000 barrel lots, onto larger tankers to reduce shipping costs.
Due to the political row, crude from Saudi Arabia, the UAE and Bahrain
cannot be co-loaded with Qatari crude, limiting co-loading of Qatari grades to crude from Iran, Iraq, Kuwait and Oman, which are not part of the dispute,” the IEA said Wednesday.