Oil falls 5% after producers fail to coordinate production
On Monday, oil dipped 5% after an unsuccessful gathering at Doha. So, the global oversupply is still actual.
Brent crude futures were worth $40.86 per barrel, thus demonstrating a 5.2% sag since the last settlement. Secondly, US crude futures edged down 5.7%, trading at $38.06.
18 oil exporters along with Russia had a meeting at Doha, Qatar with the only purpose to stabilize oil output at least at January levels until this year’s October.
Unfortunately, the deal failed to come true, when Saudi Arabia insisted that Iran should join to save the agreement and support crude prices.
Needless to say, this failure is extremely negative from the psychological point of view, because it shows an absolute inability of all sides to come to a compromise.
Undoubtedly, the development will revive the crude industry worries that key producers are getting down to a fierce battle for market share again, while the entire globe is already flooded with oil, especially when Saudi Arabia threatened to drastically increase its output if the long-awaited freeze deal fails.