Oil has risen because of rising tension over Qatar

Moscow. June 5. INTERFAX.RU – oil Prices rise on Monday amid increased political tension in the middle East.

The cost of the August futures for Brent crude on the London ICE Futures exchange to 8:10 Moscow time rose to $0,63 (1,26%) – to $of 50.58 per barrel. By the close of market on Friday has fallen in price on $0,68 (1.34 percent) to $49.95 per barrel.

Futures price for WTI crude oil for July in electronic trading on the new York Mercantile exchange (NYMEX) has increased by this time for 0.61 $(1,28%) to $48,27 per barrel. The contract fell by $0.7 (1.45 percent) to $47,66 per barrel at the end of the previous session.

As reported by the international media, United Arab Emirates, Bahrain, Egypt and Saudi Arabia announced the severance of diplomatic relations with Qatar. They announced the closure in Qatar of their diplomatic missions and the withdrawal of diplomatic personnel, the planned cessation of Maritime and air links between them and Qatar.

The reason for such action was the charge of the Qatari authorities to support terrorist activities, including “al-Qaeda” and ISIS (banned in Russia).

The conflict did not affect the supply of oil, but it creates the risk of disruption of the export of raw materials from the region, experts say. According to the U.S. Department of energy, the share of the Strait of Hormuz, through which deliveries of oil from the Middle East, accounts for about 30% of oil delivered by sea.

Last week, oil prices showed the most significant drop over the last month, which was due to strong production growth in the United States. A negative factor for the market was also the decision of the President of the United States Donald trump on the country’s withdrawal from the Paris climate agreement, increasing fears that the U.S. government would enhance its support for the shale sector, writes MarketWatch.