Oil Collapses After No Doha Deal
Crude Oil contract WTI has opened under extreme pressure, last at $37.65
from last Friday's close above $40 after the long-awaited Doha Oil
meeting failed to agree on any production freeze in order to further
stabilize prices.
No deal without Iran, says Saudi Arabia
As
Reuters reported earlier on Sunday, OPEC and non-OPEC ministers
concluded the Doha talk without an agreement. According to sources
familiar with the matter, the refusal of Saudi Arabian leaders to reach
any sort of deal without Iran being on board led to the collapse in the
prospects of any possible, and while the meeting carried on for another 8
to 10h, the latest draft statement contained nothing of substance.
Faith on production freezes destroyed
Oil
market has been trading on a more constructive fashion, with the failed
Doha meeting one of the main factors having recently supported the
recovery. Now that all bets are off for a production freeze deal in the
near term, with politics getting in the way once again, it looks as
though it is the perfect excuse for Oil bears to re-engage on what might
be a nasty selling campaign over the coming days even weeks.
The
Financial Times cites Mohammed Bin Saleh Al-Sada, Qatar’s energy
minister, saying "we all need time for further consultation.” Falah
Alamri, the Iraqi representativ, also wmade some juicy comments, noting
that "“we are very very disappointed as this will effect the oil price
and our earnings. We wanted a deal.”
(Market News Provided by FXstreet)
