Expert: unsuccessful negotiations will not affect the price of oil in Doha – RIA Novosti

© AP Photo / Jon Gambrell

DUBAI, April 18 – RIA Novosti, Yulia Troitskaya to no avail. meeting-largest countries oil producers in Doha has no effect on oil prices, as oil market participants have been pre-pessimistic in relation to the meeting, the director of international and geopolitical studies of the Bahrain center for strategic, international studies and research in the field of energy Omar al-Ubeydli .

“not in the short nor in the long term, have any impact on the prices of a meeting in Doha will not, because the oil markets are confident that the participants in these meetings are not able to reach any agreement,” – said al Ubeydli in an interview with RIA Novosti.

oil-producing countries following the meeting in Doha on Sunday failed to reach an agreement on the freezing of production of “black gold”, although a draft agreement providing for the freezing of oil production at the level of January 2016 to October, was ready. Before beginning the discussion of Saudi Arabia suddenly began to insist on the participation in the agreement of all 13 OPEC members, including Iran and Libya, whose representatives did not attend the meeting. In turn, Iran declared its readiness to discuss the issue on frozen only after reaching the dosanktsionny production level of 4 million barrels per day. In January, Iran was producing only 700 thousand barrels per day, but now came out to measure more than 3 million barrels.

According to the expert Bahrain Science Centre, the oil price will continue to rise slowly, as the oil investments crumble, shale US crude oil decreases and the global demand for “blue” fuel is growing.

among the reasons that led to the failure of the meeting in Doha, al-Ubeydli called “very unfortunate idea to manage a cartel in the international oil markets, especially when Iran and the United States are not involved in these transactions. ” In addition, according to analysts, “the nature of cartels” does not allow them to develop sustainable solutions, and agreements rarely last longer than a few weeks.

According to him, in the past, Saudi Arabia has sought to produce oil much less its features, to compensate for supply disruptions and make prices more stable. However, the production of shale oil and big oil reserves have eliminated the need for this, as the sharp rise in oil prices has become impossible. Al Ubeydli noted that now the oil market looks almost like the markets of other minerals, such as gas and coal.

Expert pessimistic about the prospects for oil producers to approve a joint agreement during the next meeting in June, to be held together with the meeting of OPEC in Vienna. “There is no possibility of an agreement in June in the producing countries is not only thing that can happen -. Countries that already produce to capacity, agree to freeze these figures, but this is absolutely not essential for the market, because the increase in oil production, by definition, have become impossible “, – said

© Ruptly

The head of the Ministry of Energy Novak commented on the results of the meeting on the oil in Doha

Thank you! Your opinion is taken into account.

Rate this article