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Saturday, 1 July 2017

Saudi Arabia and Qatar Are Still Friends When It Comes to Tankers - Bloomberg

Saudi Arabia and Qatar Are Still Friends When It Comes to Tankers - Bloomberg:

"As Saudi Arabia leads three other Arab nations in accusing Qatar of links to terror groups and being too close to Iran, one thing is becoming increasingly clear in the oil market: tensions have yet to reach a point where the world’s biggest crude exporter is disrupting its tiny neighbor’s shipments. The number of tankers that are filling with Qatari crude along with that of Saudi Arabia or the United Arab Emirates actually increased since tensions escalated on June 5, according to ship-tracking data compiled by Bloomberg for the 25 days before and after that date. The ability to cooperate in the tanker market despite diplomatic ties being cut shows how pragmatism often wins out over politics when it comes to the energy market. Were Saudi Arabia to block shared loadings, the kingdom would have created a logistical challenge for its own clients, forcing them to reorganize dozens of cargoes. Such disruptions can also reduce vessel supply and drive up freight costs."



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