Analysing Impact of Saudi-Qatar Rift on Global Oil Market and India

The international oil market is facing turbulent times as an alliance of four Arab nations led by Saudi Arabia is seeking to isolate Qatar over its ties to Iran. The United States President Donald Trump has vowed to iron out this geopolitical crisis.
 
Accusing Qatar, Saudi Arabia has said that it supports a range of violent groups like ISIS. Saudi Arabia, Egypt, Bahrain and UAE said they have suspend air and sea travel to and from Qatar. However, Qatar has dismissed all the allegations by Saudi Arabia and slammed it, saying that it is trying to dominate them.
 
After Saudi Arabia and three other gulf nations cut diplomatic and economic ties with Qatar, the crude oil prices in international market closed lower on Monday. Analysts think that the risk would be Qatar walking away from the agreement with OPEC nations to curb its oil supply. This could lead to higher supply and a downward pressure on oil prices.

Qatar is the good source of natural gas for India. India takes 90% of its natural gas imports from Qatar. In the last three years, the alliance between India and Qatar has grown. Qatar has plenty of natural gas reserves, more than what Saudi Arabia has. There are no OPEC-like restrictions on prices of natural gas and it is cheaper.
 
Indian government will continue to balance the diplomatic relationship with Gulf nations and follow the ongoing geopolitical tensions in Gulf areas closely.

As per a tabled by a national business daily, the Foreign Affairs Ministry of India believes that it is an internal matter of Gulf Coordination Council and India will not be impacted by this diplomatic deadlock.