Oil seesaws after Qatar shunned by Arab neighbors over alleged terrorism links

During early trading, Brent crude jumped 32 cents to above $50 per barrel, while US West Texas Intermediate (WTI) saw a 34 cent increase to $48 per barrel.

With oil production of about 620,000 barrels per day (bpd), Qatar's crude output ranks as one of the smallest among the Organization of the Petroleum Exporting Countries (Opec), but tension within the cartel could weaken an agreement to hold back production in order to prop up prices.

Oil prices fell more than 4% Wednesday, shortly after a 10:30 a.m. report from the U.S. Energy Information Administration showed domestic crude inventories rose by 3.3 million barrels in the past week.

Oil stockpiles in the United States surged by 3.3 million barrels in the week ended June 2, the EIA said Wednesday, confounding analysts' estimates for a 3.5 million-barrel decline.

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USA stocks of crude oil and gasoline surprisingly rose last week as refinery runs declined and exports fell, official data showed on Wednesday.

Overnight, crude futures settled sharply lower, after data on Wednesday showed that supplies of USA crude rose for the first time in nine weeks, adding to concerns that rising United States oil output would undermine Opec and its allies' efforts to curb supply.

The main reasons for the fuel price adjustments in June 2017 are the strengthening of the Rand against the US Dollar during the period under review and the average decrease in the prices of petroleum products in the global markets in line with the lower crude oil prices.

"Political disputes between OPEC members are nothing new, but history has shown that shared economic interests to keep supply discipline has trumped other interests", said Vivek Dhar, a commodities strategist at the Commonwealth Bank of Australia.

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An oil production platform in the Soroush oil fields alongside an Iranian flag in the Gulf July 25, 2005. August Brent crude LCOQ7, -0.49% on London's ICE Futures exchange fell 16 cents, or 0.3%, to $$49.31 a barrel. This is why Saudi cargoes to the U.S.in recent months have totaled 1.21 million barrels a day - the highest rates since 2014, the year of the oil price crash.

Surplus oil in many parts of the world and developments with Qatar had traders nervous, even after Kuwait Oil Minister Essam al-Marzouq said Qatar remained committed to restricting crude output under an agreement between OPEC and several non-OPEC suppliers.

US oil fell 5 pct to under $46 a barrel after the nation's stocks unexpectedly increased. Many OPEC member-nations ramped up production previous year ahead of the production cuts so that they would have oil to sell when the production cut gets underway.

- USA crude futures settled down 5 percent, or $2.47 a barrel, at $45.72 a barrel.

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