The deal crumbled when OPEC heavyweight Saudi Arabia demanded Iran join the plan, despite Tehran’s repeated assertions it would not.
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Prices, however, have rebounded by more than 50 per cent since mid-February, partly on the expectation that major producing countries would freeze production.
Halff said that if the rally was all about a freeze, oil prices would be falling much more sharply than they are following the meeting.
“We are not sure that they will be able to agree (on an output freeze) within OPEC”, Novak told journalists.
“The general conclusion was that we need more time to consult among ourselves in OPEC and non-OPEC producers”, al-Sada said, referring to the Organization of the Petroleum Exporting Countries (OPEC). 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.
Political tensions between Sunni majority Saudi Arabia and Shia majority Iran may have also doomed the deal as both countries continue to fight proxy wars in Syria and Yemen. This would support oil prices amid the supply glut in the Market.
Brent crude futures fell nearly 7 per cent in early trading on Monday before recovering to $41.80 per barrel at 1047 GMT, down just over 3 per cent since their last settlement. The drop in oil prices also appeared to be contributing to falls in stock markets across Asia, with Tokyo’s Nikkei down 3 percent and Hong Kong’s Hang Seng off 1.3 percent.
Oil prices may be getting propped up somewhat by news that a Kuwait oil workers strike has cut the country’s crude output in half.
Oil prices hit a 12-year low in January, dipping under $30 a barrel, but had risen above $40 in recent days, buoyed by bullish talks surrounding the Doha meeting.
OPEC is to hold its next scheduled meeting in the Austrian capital, Vienna, on June 2. But barring a sudden reconciliation between Iran and Saudi Arabia – or a historic collapse in crude prices – a summer deal seems unlikely. Saudi Arabia said it wouldn’t back a deal if Iran, which is trying to ramp up output as global sanctions are lifted, wasn’t involved.
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Iran didn’t even show up for the talks after saying initially that its OPEC representative would attend.
