Earlier, Mohammed bin Saleh al-Sada, energy minister of Qatar said 15 oil-producing countries are expected to be present at the Doha meeting, which comprise about 73 percent of world oil output.
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The expert believes that freezing the current production is meaningless since the major producers that attended the meeting are producing at the levels of their maximum production capacity. Anas al-Saleh, Kuwait’s finance minister and acting oil minister, smiled and acknowledged being optimistic before being whisked away in an elevator with his entourage after entering the luxury hotel hosting the meeting in Doha. However, Saudi Arabia has no role as swing producer in the market any longer and this role is now transferred to the U.S.
Against this background, oil analysts are watching the latest tension with interest and say it could have consequences for producer relations and the upcoming OPEC meeting on June 2. With Russia’s economy lingering in recession because of dual pressures from lower crude oil prices and sanctions, Putin said the revenue stream was facing “significant” headwinds.
Yet there is a market risk to walking away without a deal: a contentious OPEC meeting in December that ended without an agreement saw oil prices tumble.
“A drop in oil prices is unambiguously negative for the Canadian economy, all things considered”, Poloz said, according to Reuters.
The disparity in views of participants left the bank’s analysts in no doubt that the outcome is materially weaker than the market was anticipating.
Russian Federation is a major energy producer and exporter, and its currency depends heavily on the price of oil.
“But production from USA shale formations has driven up oil supplies so quickly that prices have fallen globally, down to 12-year lows”. Iranian representatives were not present at the talks.
The countries hope the cap will help global oil prices rebound from their dramatic fall since summer 2014, when prices stood at above $100 a barrel, though no one is talking seriously about the more dramatic step of reducing global supply by collectively cutting production for now.
Oil prices have been on the rise, recovering from a low of $30 a barrel in mid-January as Qatar, Russia, and Saudi Arabia have led efforts to freeze prices.
Iran has said it wants to increase production to regain lost market share due to worldwide economic sanctions.
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Overall, Doha meeting could not have a positive effect on falling oil prices. The market seems to continue suffering from oil glut for now.
