| SINGAPORE, June 6
SINGAPORE, June 6 Oil recovered some losses from
the previous session on Tuesday, but Brent crude remained below
$50 over concerns that a political rift between Qatar and
several Arab states would undermine efforts by OPEC to tighten
Brent crude futures were trading at $49.61 per
barrel at 0027 GMT, up 14 cents from their last close but still
almost 8 percent below 25 May, when an OPEC-led policy to cut
oil output was extended to cover the first quarter of 2018.
U.S. West Texas Intermediate (WTI) crude futures were
at $47.51 per barrel, up 11 cents from their previous close, but
down 7.3 percent from May 25.
The Arab world's biggest powers cut ties with Qatar on
Monday, accusing it of support for Islamist militants and Iran.
Steps taken include closing down transport links with Qatar
and preventing ships coming from or going to the small
peninsular nation. That includes the port and docking area of
Fujairah, in the United Arab Emirates, used by Qatari oil and
liquefied natural gas (LNG) tankers to take on new shipping
With production capacity of about 600,000 barrels per day
(bpd), Qatar's crude output ranks as one of the smallest among
the Organization of the Petroleum Exporting Countries, but
tension within the cartel could weaken the supply deal aimed at
"A potential risk to monitor might be that Qatar will view
this as being provided with less encouragement to comply with
the agreed production quota," said Jameel Ahmad of futures
Although Qatar is a relatively small oil producer, other
OPEC states could see such an action as a reason to stop
restraining their own output, traders said.
(Reporting by Henning Gloystein; Editing by Joseph Radford)