Oil prices jump after Saudi Arabia and Arab allies cut ties with Qatar

Petronet says no impact on Qatar LNG

 OIL PRICES :  Saudi Arabia and key allies on Monday cut ties with Qatar, accusing it of supporting extremism, sending shockwaves through the energy industry as the countries involved include the world's top oil and liquefied natural gas (LNG) exporters.

Saudi Arabia, the world's biggest crude oil exporter, along with the United Arab Emirates, Egypt, and Bahrain said they would sever all ties including transport links with Qatar, the top LNG exporter in the world. The three Gulf countries said they will give Qatari visitors and residents two weeks to leave.

"(Qatar) embraces multiple terrorist and sectarian groups aimed at disturbing stability in the region, including the Muslim Brotherhood, ISIS (Islamic State) and al-Qaeda, and promotes the message and schemes of these groups through their media constantly," Saudi state news agency SPA said .

While the announcements did not immediately affect oil shipments, benchmark Brent crude futures prices rose over 1 percent to well over $50 per barrel following the news.

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Meanwhile, Petronet LNG said on Monday it did not expect any impact on gas supplies from Qatar after Saudi Arabia, Egypt, the United Arab Emirates and Bahrain severed ties with the Gulf Arab state accusing it of supporting terrorism.(read more)