Diplomatic tension with Qatar not to greatly affect oil prices – expert
Baku, Azerbaijan, June 5
By Leman Zeynalova - Trend:
The spat with Qatar isn’t likely to make much difference to oil prices, Tom Pugh, the economist at British economic research and consulting company Capital Economics, told Trend June 5.
“The country is a small producer and shipments don’t seem to have been impacted,” said the expert. “It could lead to less unity among OPEC, but the group has been good at keeping oil policy separate from other disputes, so this is unlikely.”
Earlier, oil prices rose amid the diplomatic tension with Qatar. The price for August futures of Brent crude oil has increased by 0.98 percent to $50.44 per barrel as of 06:30 (GMT +4). Meanwhile, the price for July futures of West Texas Intermediate (WTI) has grown by 1.01 percent and stood at $48.14 per barrel.
“Prices are already down by about 0.5 percent now. But I think these tensions shouldn’t have a lasting impact on oil prices,” he added.
Bahrain, Egypt, Saudi Arabia and the United Arab Emirates have severed diplomatic ties with Qatar, accusing it of fueling extremism and terrorism.
All four countries also suspended travel to and from Qatar.
Qatar says move is "unjustified" and says it carries out its duties in the fight against terrorism.
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