Fitch Ratings Agency removed Qatar from the “negative watch” list and kept its sovereign rating at “AA,” indicating a decline in the risks threatening liquefied natural gas facilities since March.
But the agency kept Qatar's outlook at "negative", in light of the continuing risks resulting from the disruption of liquefied natural gas exports through the Strait of Hormuz.
Qatar is among the economies that witnessed the largest reductions in expectations during a Reuters poll, as the gross domestic product is expected to contract by 8.1 percent this year, compared to expectations of a 6 percent decline last April.
The agency said in a statement on Friday evening: “It will take longer to absorb the impact of the war on creditworthiness.”
Qatar, one of the world's largest exporters of liquefied natural gas, has been dealing with disruptions in exports through the Strait of Hormuz and shortages linked to damage to energy facilities.
The rating confirmation comes months after Fitch warned against downgrading Qatar's sovereign rating, with mounting concerns about the security and economic repercussions of the war on Iran.
Reuters reported last month that Qatar has lost about $24 billion in gas sales since the conflict began six months ago.
Standard & Poor's and Moody's also confirmed Qatar's rating earlier this year, saying that its "substantial" financial position mitigates the impact of the US-Israeli war on Iran.
The British Treasury said it would lower a key rate used to evaluate the long-term benefits of investing in public infrastructure projects, as part of plans to boost investment across the country.
The discount rate used to evaluate public spending will be reduced to 3 percent from 3.5 percent, the Treasury Department said in a statement on Friday evening, clarifying amendments to the “Green Book” guide that regulates the approval of capital projects.
Discounting refers to the way the Treasury compares costs and benefits at different times, with £100 today being treated as more valuable than a promise to receive £100 in the future.
Lowering the discount rate narrows this gap, making it easier for long-term projects to show their full value rather than diminishing their value simply because their benefits take years to realize.
The government will publish full details of the plan, including its response to the discount rate review, in the Budget on October 28. Treasury Secretary John Healey plans to deliver his first major speech in his new role on Monday, where he is expected to outline details of the plan.
The Treasury said the changes aim to give transport, housing and social infrastructure projects “fairer treatment” in government spending decisions, by giving greater weight to benefits that take years to appear.
Americans are facing record-high gasoline prices over the Labor Day weekend, as the war in the Middle East continues to raise energy costs, coinciding with the launch of political campaigns for the midterm congressional elections.
Americans celebrate Labor Day on the first Monday of September every year.
Patrick De Haan, an analyst at Gas Buddy, said, according to Reuters, that the average price of gasoline nationally would reach $4.03 on Labor Day, far exceeding the previous record level of $3.83 per gallon recorded in 2012.
“While gasoline prices are not at their highest levels ever recorded, they are at an all-time high this late in the year, meaning Americans may for the first time see a national average gasoline price of more than $4 per gallon on Labor Day,” De Haan wrote in a recent blog post.
According to the price tracking service Gas Buddy, the average price of gasoline in the United States was about $4.13 per gallon on Thursday, an increase of nearly one dollar from last year’s average. Analysts say that the price of four dollars per gallon represents a burden on many consumers.
Gasoline is a concern
Gasoline prices are among the most prominent economic indicators for American consumers, and can quickly shape their perceptions of the economy in general. With prices remaining above $4 per gallon for most of the year, this issue has become a source of concern for President Donald Trump and his Republican Party.
Trump has pledged to reduce energy costs. In recent weeks, he has escalated his criticism of oil refinery companies and gas stations, accusing them of profiting from rising gasoline prices.
On August 14, Trump said that Americans should be prepared to pay “a small additional amount” for gasoline to ensure that Iran cannot obtain a nuclear weapon.
Labor Day is usually the last summer holiday for many Americans, during which many travel by land or air.
Oil prices
Fuel prices at gasoline stations rose in parallel with crude oil prices, which jumped last week to exceed $90 a barrel again after renewed military action between the United States and Iran stoked fears about disruptions to global crude oil supplies.
Distillate prices, which include diesel and heating oil, have also increased, partly due to ongoing attacks on Russian refineries that have raised concerns about supply disruptions.
Retail fuel and oil prices typically move in the same direction because crude is the main component of the cost of fuel production.
“It's completely out of control,” Randi O'Brien, 57, said while filling her truck with gas at a station near Evergreen, Colorado. According to Reuters.
Colorado, Utah, Idaho, Montana, Wyoming and North Dakota recorded some of the highest rates of price increases since the war began. California, Hawaii and Washington currently have the highest average gasoline prices in the country.
Cut back on holiday travel plans
“I can't afford more than $15 for gas right now,” said O'Brien, who drives her truck 40 minutes back and forth every day to work at Home Depot.
O'Brien attributes the rise in prices partly to the increase in crude oil and fuel exports from the United States after the start of the war with Iran, which prompted many countries to import from the United States to obtain fuel supplies.
According to the US Energy Information Administration, exports of refined products rose more than 10 percent compared to last year.
With the cost of even the simplest grocery purchases rising, and increasing pressure on family budgets, Madison Moore, 28, who lives in Houston, said she will reduce her travel plans for Labor Day weekend.
“It was always easy to pack up the car and go to Galveston and go to the beach and have a barbecue or something,” Moore added, while filling up her car with gas at a Shell station in Houston. But people no longer want to move around this way,” according to Reuters.
Short supply
Quan Dosmuratov, a research analyst at Wood Mackenzie, a consulting firm, said that the continued rise in gasoline prices is primarily due to the supply problem.
Concerns about the disruption of energy shipments through the Strait of Hormuz, through which about 20 percent of global energy supplies passed before the war, led to higher oil prices and refining margins, while attacks on Russian refineries contributed to reducing fuel stocks in general.
The Energy Information Administration reported last Wednesday that US gasoline inventories fell by 1.2 million barrels in the previous week to 205.7 million barrels. While the average recorded for the months of August over five years reached 217.6 million barrels.
Prices of other refined products also rose sharply. Diesel prices in the United States last week hit a new record high, and air travelers over the Labor Day holiday are expected to pay 20 percent more for tickets compared to last year, according to the American Automobile Association.
