Oil prices have increased by nearly 1% triggered by growing tensions in the Middle East where Saudi Arabia and other Arab states decided to terminate bilateral ties with Qatar.

Brent crude oil futures CLc1 increased by 48 cents to reach $50.43 per barrel, while the US West Texas Intermediate futures CLc1 also rose 48 cents to $48.14 a barrel, reported Reuters.

Saudi Arabia along with the United Arab Emirates, Egypt and Bahrain has severed ties with Qatar, accused it of supporting extremism that disturbs regional stability.

"Qatar has a production capacity of about 600,000bpd."

Qatar has a production capacity of about 600,000bpd.

Global benchmark Brent also received support from Saudi Aramco, which increased the July official selling prices for its Arab Light grade to Asia, north-west Europe and the US.

A Thomson Reuters Oil Research report noted that OPEC supplies between February and April this year decreased but shipments from the oil cartel increased more than one million bpd to 25.18 million bpd in May compared with April.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The rig count in the US increased by 11 in the week ending 2 June to 733, resulting in a rise in production.

Image: OPEC supplies between February and April this year decreased. Photo: courtesy of Vee TEC via Freeimages.com.