Oil falls 1% on fears West Asia rift could harm Opec cuts

There are already doubts that effort to curb production by 1.8 million bpd is denting crude exports

Oil prices fell about 1 per cent on Monday on concerns that the cutting of ties with Qatar by top crude exporter Saudi Arabia and other Arab states could hamper a global deal to reduce oil production.

Saudi Arabia, the United Arab Emirates, Egypt and Bahrain closed transport links with top liquefied natural gas (LNG) and condensate shipper Qatar, accusing it of supporting extremism and undermining regional stability.

The news initially pushed Brent crude prices up as much as 1 per cent as geopolitical fears rippled through the market. But Brent later reversed gains, trading down 58 cents, or 1.12 per cent