Meeting in Doha ends without agreement to freeze oil production – Jornal de Negócios – Portugal

Doha, Qatar, was the scene of a meeting that had a single aim: to freeze oil production in an attempt to rebalance the market. But hours of negotiations ended up not result in anything. Producers need more time to make a decision on this issue, having been open the possibility of a new meeting in June.

Russia, Saudi Arabia and other members of the Organization of petroleum Exporting Countries (OPEC) gathered this Sunday, April 17, to try to reach an agreement to freeze the supply of oil at a time when high supply keeps prices under pressure. But there was not. That’s what revealed at first hand, the oil minister of Nigeria, Emmanuel Ibe Kachikwu.

The failure to attempt to reach an agreement have been that differences among producing countries oil relative to the present need to include, or not, other producers in the agreement, according next unnamed source cited by Bloomberg. For other producers means the need for Iran, who was not present, having to join this agreement. Iran has increased the offer, and want to increase even more.

Mohammed Al Sada, Minister of Qatar Petroleum, gave an official explanation of the failure. In a press conference, he said that the countries of the Organization of Petroleum Exporting Countries (OPEC) need more time to discuss this issue, claiming, inter alia, to consult each other and other countries outside the cartel to reach understandings.

“the inclusion of all OPEC countries would definitely help to arrive at an agreement,” said the head of Qatar. In this sense, and failed the agreement at this meeting, there will now be time for countries to try to negotiate between themselves their positions in relation to production levels, remaining open the possibility of a new meeting in June.

waiting reaction

the excess of oil supply in the market has led oil prices to minimum over a decade. After a few years above 100 dollars, the price sank, reaching just over $ 26 in late January. Since then, with the prospect of agreement between Russia and other OPEC countries, prices have soared: rose more than 30% to above 40 dollars. Now you can correct.

The Goldman Sachs already doubted an agreement before the meeting. “We see a high likelihood that the meeting produces a pressure reason” for oil prices, said the US investment bank. And if some analysts do not believe that the failure of the meeting may penalize prices, Goldman Sachs opens the door to a correction of oil prices to 35 dollars.

( News updated at 19:29 with more information on the outcome of the Doha meeting )