Qatar Oil & Gas Revenues Fall To Eight Month Low

4 Aug 2017 Issue: 60 / 31

Qatar’s hydrocarbon revenues, and those from oil exports in particular, fell sharply in June amid ongoing geopolitical upheaval. Qatar’s 2017 deficit is already on track to exceed the budget figure, weakening revenues would provide a further blow.

Qatari oil and gas export revenues fell to an eight-month low in June, the first month affected by the Saudi-led regional embargo on the emirate. They fell 7.5% to $4.2bn, primarily driven by a fall in crude oil export revenue which was steeper than can be accounted for by lower output and benchmark prices. The implication is that Qatar has improved the terms for buyers since the start of the blockade on 5 June.

But it seems unlikely that export revenues will be significantly impacted by this for the remainder of the year. Any imperative for the government to offer overly-generous terms to buyers will likely already be weakening as the situation stabilizes. Whilst the first couple of weeks of sanctions saw some buyers fret over the continued ready availability of Qatari crude, LNG, condensate and oil products, such fears have since largely dissipated. (CONTINUED - 1221 WORDS)