Investing.com - Oil gave up gains Monday amid a diplomatic rift between Qatar and some of its Middle East neighbors.
U.S. crude was off 32 cents, or 0.67%, at $47.34 at 08:00 ET. Brent shed 40 cents, or 0.80%, to $49.55.
Saudi Arabia, Egypt, the UAE and Bahrain severed diplomatic and commercial ties with Qatar after accusing it of supporting terrorism.
After a kneejerk reaction to the dispute on shipment concerns, the market moved to the view that the rift could disrupt an OPEC-led deal on curbing output.
OPEC and non-OPEC producers have extended cuts of 1.8 million barrels a day for a further nine months to March.
Concerns also remain about the impact of the accord in reducing inventories as U.S. shale output continues to rise.
The Baker Hughes U.S. rig count rose for the 20th week in a row.
Friday's data showed a rise of 11 in the number of rigs operating in the U.S. to 733, the highest level since April 2015.