The rate of Qatar’s liquified natural gas (LNG) delivery increased due to the country’s efforts to expand its huge LNG industry, Oil Price reports.
The LNG exports increased despite the Gulf sanctions placed by Egypt, Saudi Arabia, and several Gulf countries against Qatar over alleged connections with terrorism, Oil Price noted.
Moreover, Asian petrochemical makers and refiners are snapping up shipments of Qatari condensates, driving a rally in ultra-light crude’s spot prices as some producers, including Malaysia and Iran, cut supplies of their light oil, according to Reuters.
Asian consumption of condensates have boomed in recent years as firms brought new splitters online in Singapore, South Korea, and the Middle East. Meanwhile, supplies have not increased at the same pace, and condensates’ prices and light oil processing profits have grown.
“The recent price rally was caused by supply disruption from Iran,” said Ong Han Wee, a senior analyst at FGE for consultancy.