Oil prices traded in the green zone at Asian trading on Monday, despite the fact that Saudi Arabia, Bahrain, the United Arab Emirates and Egypt reduced commercial and diplomatic relations with Qatar over the alleged financial support of terrorist organizations in the region. “[Qatar] covers several terrorist and sectarian groups aimed at disrupting stability in the region, including the Muslim Brotherhood, ISIS and Al Qaeda, and constantly promotes the messages and schemes of these groups through their media information, ”said the news agency SPA. Futures on the US West Texas medium oil futures traded at $ 48.08 a barrel on the New York Mercantile Exchange, which is 0.88% higher than in the previous close. International futures for Brent crude rose by 0.84 percent to $ 50.37 per barrel from 07:05 GMT. On Friday, the oil market closed at three-week lows – the market was still the hardest weekly drop in a month after growing concern due to larger than expected shale production in the United States. Investors fear that the growth of light oil production will thwart OPEC’s efforts to restore market forces. On Friday, oilfield services provider Baker Hughes said that 11 drilling rigs were added to the United States last week, bringing the total to 733, the highest since April 2015. Crude oil prices were also under pressure, as President Donald Trump decided to withdraw from the Paris climate agreement in 2015, a controversial decision widely criticized by activists but which could contribute to an increase in shale oil production in the near future. This week, oil traders will focus on inventory data, which is viewed as a response from US producers to OPEC-based production cuts. The nine-month extension of the cut-off agreement did not have a big impact on oil prices, at least not expected.

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