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This article was published April 17, 2016 at 18:26 hours.
the last change is the April 17, 2016 at 21:04 hours.
There are not found any agreement at a summit in Doha on the freezing of oil production. This was reported by Minister of Nigerian oil, Ibe Kachikwu, the agency Bloomberg. The negotiation has been going on since this morning, with a long break, but ended with a stalemate for Saudi-Iran tensions.
In the capital of Qatar took place in fact the summit of 18 countries OPEC and non-Opec – including Russia – he was looking for an agreement to freeze the production of oil to the levels of January and keep it that way until next October, the more realistic goal since already the eve of this important summit was possible that you could get to a cut in production. The summit began this morning, but the agreement was slow to arrive because Saudi Arabia, the world’s largest producer who leads the dance, said that all OPEC countries must agree and thus participate in the production freeze, according to OPEC sources cited by Reuters . Who has seen the new draft agreement where the binding points in the previous version have disappeared.
If all OPEC members must agree, one was not even before. Due to the fault on were in fact the tensions between Saudi and Iran, OPEC member that refuses to freeze because from January with the removal of Western sanctions for its nuclear program has once again been able to enter its crude in world markets. Now Tehran does not want self-restraint, like Saudi asks hence the friction between two major OPEC producers and the failure of today’s summit. Iranian Oil Minister Zanganeh had been clear in recent days, he has shunned even to attend the summit and called the Saudi objections “ridiculous”.
The deal was first questioned and then failed because Saudi has decided to depend on the green light to freeze Iran’s accession, which we already knew would not come. It fade so the possibility of a restraint of OPEC and non-OPEC countries in the plans would drive up oil prices. The discussion went on for five hours, there was also a violent confrontation between Saudi and Russia for the words to use in the press, while the stock exchange of Saudi Arabia shut down.
The ministers present at the meeting reassured that the negotiations will continue, they said – did know one OPEC source – that “they need more time.” Probably by June there will be a new summit, but the fear is that to suffer is immediately the price of oil which it was hoped could climb thanks to this summit. Another fear is that Saudi face as threatened, ie a sudden increase in production if this summit had failed. The international crude oil prices started to rise for a few weeks thanks to the draft agreement between the producer countries, with Brent and US WTI back above $ 40 a barrel after hitting lows in January under 30. “Without a today’s agreement, is likely to decrease market confidence in OPEC’s ability to achieve a balance of inventories, prices had risen so far in view of this possible agreement, “says an analyst at Natixis.
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