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Qatar warns that oil could double to $150 a barrel and 'bring down the economies of the world
Qatar's energy minister has warned the price of a barrel of oil could double to more than $150, dragging down global economies.
Saad al-Kaabi says the Middle East conflict could result in a new energy crisis and 'bring down the economies of the world.'
Currently, oil is trading at around $85 a barrel. That comes after spending most of the year around the $60-$65 a barrel mark.
Mr Kaabi told the
Financial Times that such a rise will 'bring down the economies of the world.'
'If this war continues for a few weeks, GDP growth around the world will be impacted. Everybody's energy price is going to go higher.
'There will be shortages of some products and there will be a chain reaction of factories that cannot supply.'
He warns Gulf energy exporters could shut down production, and that in turn would drive the price of oil up.
He told the FT tat even if the war does end soon, it is likely to take weeks or months for production cycles to return to normal.
That comes after an Iran drone strike hit its largest liquefied natural gas plant earlier in the week.
Oil is on track for its biggest weekly gain since 2022, as conflict in the Middle East disrupts markets and adds to fears of a fresh bout of
inflation.
Under attack: Satellite imagery yesterday shows a large fire at Fujairah Oil Industry Zone, in the UAE
Brent crude trimmed earlier losses to sit above $85 a barrel this morning, but prices have soared nearly 20 per cent this week