The major oil producers failed to reach an agreement Sunday (April 17) to freeze production and boost oil price, after a meeting in Doha marked by the rivalry between Saudi Arabia and Iran.
“The overall conclusion is that we need more time for consultations between us, between OPEC and non-OPEC producers,” said Mohammed bin Saleh al Sada. A date for a new meeting was not decided, he added. Following the absence of agreement there is an expectation on how the markets will react during the next days. With regard to the consequences, Sada said that “many factors” that influence prices and said the oil market fundamentals remain positive.
A project, signed in February by Saudi Arabia, Russia, Qatar and Venezuela, seeks to freeze oil production in order to counter the oversupply until demand is reactivated, the third quarter of 2016. The meeting brought together fifteen countries, mostly members of OPEC. Iran, which did not attend the meeting was at the center of discussions since Tehran is opposed to freeze production, after spending years out of the market by international sanctions, newly erected after the agreement on the nuclear program with major powers.
“We respect Iran’s position (…) maintenance certainly would have been more effective if large producers such as Iran had been included”.
To conclude, we can assume that the oil price will remain at its current price for a while… at least until OPEC finds a common agreement cutting down production around the world and letting national oil reserves squeeze a bit.