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Tensions in Middle East

Oil price falls as Qatar accused of backing terror

Oil rig vidArab nations have cut diplomatic and transport ties with Qatar over claims it is funding terrorism.

Leading Arab powers including Saudi Arabia, Egypt, and the United Arab Emirates have accused the Gulf state of supporting Islamist militants and Iran. Qatar denies the claims.

Qatar Airways, the state’s national carrier, said there would be no UAE, Bahrain, Saudi, Egypt flight and it would not be using their airspace.

The dispute caused oil prices to fall for a third day on concerns that it would undermine an OPEC-led push to tighten the market.

Brent crude was trading at $49.27 per barrel this morning, down 20 cents, or 0.4% from its last close. US West Texas Intermediate (WTI) crude had dropped 18 cents, or 0.2% to $47.21.

Ships will be prevented from connecting to the peninsular nation to dock at Fujairah, in the UAE, used by Qatari oil and liquefied natural gas (LNG) tankers to take on new shipping fuel.

Analysts said that the current dispute goes much deeper than a similar rift in 2014.

Qatar is one of the smallest crude output producers among OPEC nations, but the growing tension could weaken an agreement to hold back production in order to prop up prices.

 

 

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