Decision will not affect OPEC agreement

Saudi Minister of Energy Khalid Al Faleh said that there is no need to achieve any amendments in the agreement of the world's oil producers, saying that the decline of oil prices comes as a reaction from the market upon statistic mistakes. He added that the decision taken by Saudi and its allies will not leave any repercussions on the agreement.

He added that the Saudi-led effort to isolate Qatar won't impact the price of oil much, Saudi Arabia's Minister of Energy, Industry and Mineral Resources. Within the energy markets, there is no change," Al-Falih said on the sidelines of meetings in Kazakhstan over the weekend. Several Saudi-led Arab states abruptly cut off ties to tiny Qatar earlier this month.

Saudi Arabia has issued demands of Qatar, including ending relations with Iran, breaking all ties to the Muslim Brotherhood and expelling all members of Hamas, according to an Al Jazeera report. It also demanded Qatar shut down broadcaster Al Jazeera, which came under cyber attack last week.

The catalyst for the rift was an alleged statement by Qatar's emir that criticized Saudi Arabia and President Donald Trump, who recently visited Saudi Arabia in his first foreign trip, agreeing to new military contracts and a broader economic relationship.

"Qatar is a member of the OPEC organization and is a signatory of the 24-member agreement that has just been extended," he said. "We trust that they will continue to abide, but their overall contribution in terms of the cuts is rather insignificant in the overall scheme of things."

"But it's not in our hands, it's within the control of the Qatari governments," he said. "We think that the neighbors of Qatar, not only in the GCC, but elsewhere in the Arab world and in elsewhere in the global community, have made it clear what those conditions are."

Overall, Al-Falih expected that the deal to cut output would work to clear oil oversupply, despite a market swoon last week on unexpectedly high inventory data.

Oil stockpiles in the United States surged by 3.3 million barrels in the week ended June 2, the Energy Information Administration said in the middle of last week, confounding analysts' estimates for a 3.5 million-barrel decline and sending oil prices tumbling.