Energy markets stabilise after shock; supplies not threatened

London

AS Saudi Arabia and four other Arab states cut diplomatic ties with Qatar on Monday, energy markets tried to digest whether the tensions would translate into disruptions.

The flare-up in the Middle East added to the instability in the world's most important energy-exporting region. Saudi Arabia is the world's biggest exporter of crude, while Qatar is home to substantial natural gas resources.

But a diplomatic dispute will not necessarily threaten supplies. Amid a global glut, other countries could easily step in to fill the void, provided tensions in the region do not escalate.

Likewise, investor…