Energy markets can get through blockade against Qatar

THE blockade against Qatar is undoubtedly causing difficulties for the citizens of the small Persian Gulf emirate. But its isolation is far from complete, and chinks in the wall are a clear indication that the connections that exist between Qatar and its uneasy neighbours cannot easily be broken. And, it looks like energy markets can survive the policy.

Qatar's rulers built the country's independence on exports of hydrocarbons - particularly natural gas - and flows of these commodities have been put at risk by the restrictions imposed by Saudi Arabia, the United Arab Emirates, Bahrain and Egypt.

As I noted last week, the precise nature of these restrictions is far from clear. Some authorities in Saudi Arabia and the UAE. say any vessel travelling to or from Qatar cannot enter their ports. More recently, the UAE's Federal Transport Authority limited the ban to those that are Qatari-owned or flagged, and to the loading or unloading of ships trading with Qatar.