Oil prices reel from Qatar diplomatic rift

Oil prices spiked and then fell Monday as energy markets were buffeted by news that Saudi Arabia, Egypt, Bahrain, Yemen and the United Arab Emirates had severed diplomatic ties with Qatar.

Global benchmark Brent crude climbed as much as 1.25 percent in early Asian trading before slipping back to close at 49.47 U.S. dollars. West Texas Intermediate followed the same route, rising 1.2 percent in early trading before sliding to 47.40 dollars.

The initial rise was prompted by the prospect of a decline in supply but investors later became more fearful about the crisis’ possible threat to an OPEC agreement to reduce oil production.

The five Middle East countries accused Qatar of supporting terrorism and impairing peace and stability in the region, which the Qatari side has denied.