Oil pressured as Qatar rift continues to grip

Oil remained under pressure Tuesday as the rift in Middle East ties continued to grip Qatar.

U.S. crude was off 7 cents, or 0.15%, at $47.33 at 08:30 ET. Brent shed 16 cents, or 0.32%, to $49.31.

Oil seesawed Monday as a Saudi-led alliance broke off ties with Qatar, alleging its neighbor backed terrorism.

Potential disruption to oil shipments are being weighed against fears of a possible unraveling of an OPEC-led accord to curb output.

OPEC and non-OPEC producers extended output cuts of 1.8 million barrels a day for another nine months.
Increased U.S. output could scupper their efforts to rein in inventories.

American Petroleum Institute stockpile data are due out later in the session.

These will be followed Wednesday by Energy Information Administration inventories.

The EIA is forecast to report a fall in U.S. crude stocks of 3.45 million barrels in the latest week.

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