Absence of positive results of the oil meeting in Qatar led to an expected decline in oil prices. Against the expectations of an agreement on a production freeze, oil prices recovered from the previous losses.
The meeting participants failed to come to an agreement. However, several days before the event, such oil giants as Russia and Saudi Arabia had confirmed their readiness to freeze oil output. Nevertheless, at the meeting, Saudi Arabia refused to make a deal until Iran promises to do the same. In its turn, Iran said that after the sanctions lift it plans to increase its production of black gold up to 4 million barrels a day. Thus, Iran will consider agreements only after reaching the target. Just after mass media revealed information about unsuccessful meeting of oil producers, crude prices started moving downwards. Most analysts suppose that oil is unlikely to tumble to fresh all-time lows, but a rise is neither expected.
There are still some reasons for optimism even in such an uncertain period in the global oil market. The summit participants announced another meeting as they realized that oil prices can be boosted just by discussions of output freeze. A new round of negotiations may take place in June. Its aim is the same, to hold oil production at the current level in order to fix global market prices. In general, at the latest meeting, the world’s largest producers had a chance to see each other and talk whereas market participants were given new promises to influence the process of pricing in the near future.
