After yesterday’s OPEC meeting, with the aim of agreeing on a production ceiling among the major oil-producing countries, failed now falling oil prices worldwide . Brent fell initially by six percent in Monday morning.
During the Sunday meeting in the capital, Doha Quatars expected the major oil producing countries in OPEC to agree on a production ceiling, which would freeze oil production to the level they produced in January. This production ceiling, which aims to stabilize the production, would then be valid until October this year.
But Iran chose not to come to the meeting, however, could no agreement is concluded. This is because the major producer Saudi Arabia called for Iran’s presence. Iran and Saudi Arabia are namely competitors in the oil market in the Middle East. Iran, however, has refused to accept a freeze on the production level, then you have the ambition to win back the market share it has lost as a result of the recent sanctions against the country.
The effects of that meeting was not successful, was that oil prices fell below Monday morning. Brent futures fell the most by six percent in the morning, then stabilize at $ 41.29 per barrel. The final reduction is thus at 4.2 percent. Furthermore, US futures fell by 4.63 per cent down to $ 38.49 per barrel.
The article was published Monday, April 18, 2016
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