NEW YORK, JUNE 6: Oil prices declined by almost one percent due to concerns on the diplomatic relations between Qatar and several main crude oil exporters that can hamper the global deal to reduce the oil production.
REUTERS reported that Saudi Arabia, United Arab Emirates (UAE), Egypt and Bahrain have closed their borders with Qatar, and have accused the country of being involved with terrorists and undermining regional stability.
The report has pushed down the Brent crude oil price by up to 1.6 percent due to the geopolitical concerns coming through the market.
However, August Brent price ended its session with 48 cents or 0.96 percent lower, at USD49.47 per barrel.
U.S. West Texas Intermediate futures settled 26 cents or 0.55 percent lower at USD47.40.
U.S. oil futures dropped by about 2.5 percent to settle at USD1.5381 a gallon, on technical selling, brokers said.
With production capacity of about 600,000 barrels per day (bpd), Qatar’s crude output ranks as one of the smallest among the Organization of the Petroleum Exporting Countries, but tension within the cartel could weaken the supply deal aimed at supporting prices.
Oil prices decline due to Qatar issue
