Oil prices rise amid diplomatic rift in Qatar

Oil prices rose after a political rift in the Middle East escalated, with Saudi Arabia, Egypt, Bahrain, Yemen and the United Arab Emirates cutting ties with Qatar.

As a result, Brent crude, a global benchmark for the value of oil, rose 1.24 percent in early Asian trade on Monday to $50.57 a barrel.

West Texas Intermediate, the U.S. benchmark, rose 0.9 percent to $48.08.

Qatar’s stock market fell 7.65% amid the Gulf diplomatic crisis.

The five Arab nations have announced they will withdraw their diplomatic staff from Qatar, accusing the country of supporting terrorism and destabilizing the region through its support for Islamist groups and its relations with Iran.

Abu Dhabi-based airline Etihad said it was suspending flights to Qatar “until further notice”.

Emirates, the Dubai-based carrier, said it would also suspend flights to the gas-rich country from Tuesday.

Qatar said there was “no legitimate justification” for the coordinated action, adding that its citizens would not be affected by the “violation of its sovereignty”.

Meanwhile, Qatar Airways said it was suspending all flights to Saudi Arabia.

The price of Brent crude fell more than 4 percent last week to $51.32 a barrel after oil-producing countries agreed to continue cutting production.

The 13 (Berlin: 32635652.BE – news ) members of the Organization of the Petroleum Exporting Countries (OPEC) made the decision in hopes of addressing a major global glut that has pushed oil prices to less than half their midpoint. -2014 level.

Saudi Arabia is the largest exporter of crude oil in the world. Abu Dhabi in the United Arab Emirates is also a major player in the industry.

Qatar is the largest supplier of liquefied natural gas (LNG) and a major seller of condensate – a low-density liquid fuel derived from natural gas.

OPEC accounts for a third of global oil production and includes many of the world’s largest oil exporters, such as Saudi Arabia and Qatar.