Oil Prices gets a leg up after Saudi Arabia and other countries from the Middle East cuts its ties with Qatar

Oil prices leg up

Crude Futures sharply rose early in today’s session after a political split in the Middle East Escalated when Saudi Arabia the other countries cut off its diplomatic ties with Qatar.

Saudi Arabia, Egypt, Bahrain and the United Arab Emirates simultaneously cut their ties with Qatar today, because of accusations that the country was meddling in their internal affairs and was rumored to support terrorist acts.

Analyst say that Oil traders are especially sensitive to Middle East tensions because the market is prone to disruptions.

However, Phin Ziebell, an economist at national Australia bank stated that the latest Developments doesn’t seem to have a direct impact in the oil production and exports, and even stated that the sudden rise in Oil Futures was a direct reaction and a speculative move.

In the previous week, Oil Futures was seen trading in negative positions, prices was in the negative positions depreciating for more than 4 percent which was the biggest weekly declines since early May.

Concerts subsided further after data from the industry group Baker Hughes Showed the markets that the U.S. added 11 more rigs in the week.

In the New York Mercantile Exchange, Crude futures for the month of July was traded at $48,21 per barrel, which was up by 55 cents, a relative 1.1% increase in the globe electronic session. While August Brent Crude on London’s ICE Futures Exchange was up by 56 cents also a 1.1% increase and was being traded at $50.50 per barrel

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