Oil shrugs off geopolitical tensions but some see red flags

By Amanda Cooper | LONDON The oil price has ignored rising geopolitical tensions in the Middle East, as a three-year old crude surplus has wiped out any real fear over supply, but one of the world’s largest security consultants says there are red flags the market cannot ignore. Bahrain, Saudi Arabia, Egypt, the United Arab Emirates and several other countries cut ties with Qatar on Monday, accusing it of supporting Islamist militants and their arch-enemy Iran – charges Doha says are baseless. In Tehran, Islamic militants attacked the Iranian Parliament on Wednesday, killing at least 13 in an assault that Iran’s Revolutionary Guards blamed on regional rival Saudi Arabia. Around a third of the roughly 97 million barrels per day of oil that the world needs comes from the Middle East and yet as tensions have flared, the price has fallen to its lowest in a month, to below $49 a barrel. Qatar is the world’s largest producer of liquefied natural gas, but one of the smallest members of the Organization of the Petroleum Exporting Countries, which on May 25 agreed with 11 of its rivals to extend an oil supply cut of 1.8 million barrels per day into 2018

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Source: CTRM Center

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