The Kremlin’s geopolitical shock: the oil price suddenly drops again because of the split in OPEC

As of 5 June offer price of oil fell at the auction because of a “geopolitical shock”, which was provoked by the unexpected decision by the governments of six Arab countries to fully terminate diplomatic relations with Qatar.

Accusing the state’s financial support of terrorism and destabilization of the world situation, the government of Saudi Arabia, Bahrain, UAE and Libya (OPEC members), as well as Egypt and Yemen withdrew from Doha diplomatic representatives instructed the Qatari nationals to leave their country for the next two weeks.

At the same time, Riyadh “preserve” the land border with Qatar, which directly has influenced the halt supplies 70% of imports to the Emirate.

Despite the attempt of growth and overcoming the milestone of $50 per barrel of Brent, the day oil prices began to slide in the negative, immersed in the zone of minimum values from the beginning of may. 23:31 Kyiv time on 5 June Brent became cheaper by 1.02 percent, fell to 49,44 per barrel; WTI rose by 0.67% to 47.34 per dollar per barrel.

All of this negatively affects the country, producing oil, as reflected on the economic condition of the States which live on the oil sales. This includes the Russian Federation, for which cheap oil on the world market will be a huge blow.

We will remind, the day before “Диалог.UA” informed, что7 States broke off relations with Qatar.