Oil prices have slipped below $50 a barrel amid growing concerns of the impact tensions between Saudi Arabia and Qatar will have on OPEC's output cuts initiative.  

Benchmark Brent crude oil LCOc1 fell by 15 cents to $49.32 a barrel, while the US light crude CLc1 was also down by 15 cents and traded at $47.25, reported Reuters.

Earlier, Saudi Arabia, Egypt and the United Arab Emirates (UAE) cut ties with Qatar, accusing it of providing support for terrorism. 

Ships used by Qatari oil and liquefied natural gas tankers were prevented from docking at Fujairah, UAE, for filling new shipping fuel. 

"Ships used by Qatari oil and liquefied natural gas tankers were prevented from docking at Fujairah, UAE."

Investors fear that this tension may weaken the agreement earlier made by the OPEC and other countries to extend the oil curb to March next year.

A member of OPEC, Qatar produces around 620,000bpd of oil.

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By GlobalData

Strong Petroleum managing director Oystein Berentsen was quoted by the news agency as saying: "The OPEC agreement stands and is highly unlikely to change because of tension with Qatar."

The continuous rise in US production also weakened oil prices, having witnessed a 10% since mid-2016 to 9.34 million bpd.