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Oil and Gas Prices Remain Stable as Diplomatic Relations Fray between Iran and Saudi Arabia

Oil and Gas Prices Remain Stable as Diplomatic Relations Fray between Iran and Saudi Arabia (Wikipedia / TUBS)

The Saudi - led group of countries severing diplomatic relations with Qatar today will have no significant impact on the price of oil, according to Alastair Newton, of Alavan Business Advisory in Livingstone, Zambia.

Newton said there is a large surplus on the supply side relative to the demand side and that this will continue to exert downward pressure on the price.

Relations between Saudi Arabia and Qatar have been deteriorating for some time. Central to the dispute is Qatar's friendly relationship with Iran, which is seen by the Saudi government as a threat to its national security and position in the Islamic world.

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