Key insights
- QatarEnergy extended its LNG force majeure due to continued Strait of Hormuz disruptions, impacting global gas supplies. This could lead to higher energy prices, potentially contributing to inflationary pressures in the US and negatively affecting consumer spending and corporate earnings, albeit indirectly. The extent of the impact depends on the duration of the disruption and alternative supply availability.
Investing.com -- QatarEnergy has extended force majeure on its liquefied natural gas supply through mid-June, Bloomberg reported Monday, as the Strait of Hormuz remains largely closed to tanker traffic.
Customers of the state producer received the notice, according to people familiar with the matter who requested anonymity as they were not authorized to speak publicly.
Force majeure is invoked when exceptional circumstances prevent companies from fulfilling their commercial obligations. QatarEnergy has issued regular force majeure notices since the Iran war began in late February.
Global gas prices in Europe and Asia have risen since the conflict started, with nearly one fifth of LNG supplies disrupted, including shipments from Qatar and the United Arab Emirates. Qatar’s Ras Laffan facility sustained damage from Iranian missile strikes in March.
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