39605
Oil Falls on Low Hopes for Doha Meeting
Energy

Oil Falls on Low Hopes for Doha Meeting

Oil prices fell on Friday in thin trade as analysts said a weekend meeting of major oil exporters would do little to help clear global oversupply quickly even though it would provide a floor for the market.
Oil producers, led by top exporters Saudi Arabia and Russia, will meet in Qatar on Sunday to discuss freezing output around current levels in an effort to contain a glut that sees some 1.5 million barrels of crude produced every day in excess of demand, Reuters reported. It would be the first joint action by major OPEC and non-OPEC producers in 15 years although Iran has refused to participate, saying it wants to rebuild its output to pre-sanctions levels.
“Momentum is building behind an agreement that likely excludes Iran (and potentially Libya). While there will likely be little effect on the physical market an agreement would represent an important psychological shift in setting oil prices,” investment bank Jefferies said on Friday.
Brent crude was at $42.77 a barrel, down $1.07 from their Thursday close. US West Texas Intermediate (WTI) futures were also down $1.05 cents, trading at $40.45.
Despite discussions among producers focusing on freezing output rather than cutting it, most analysts said they had little hope for a Doha deal that reduces the global oversupply. The glut has pulled down crude prices by as much as 70% since mid-2014. “The Doha meeting does not materially change the oil market balances,” Barclays bank said. “If recent supply-side fundamental support holds and the market’s expectations for a credible statement and commitment are met, the meeting could help prevent prices from falling back to the low $30 range.”

Short URL : http://goo.gl/TCJcae
  1. http://goo.gl/Hw0zVZ
  • http://goo.gl/opSZam
  • http://goo.gl/b04m6p
  • http://goo.gl/FLpyjd
  • http://goo.gl/VNXmXI

You can also read ...

BP: Electric Vehicles to Cut Oil Consumption
The emergence of self-driving electric cars and travel sharing...
OPEC Deal Closer to Market Rebalancing
The OPEC deal is closer than ever to meeting its market...
Brent, WTI Prices Slide Over Higher US Production
Oil prices fell on Wednesday, weighed down by a rebound in the...
The lion's share of petrochemical exports is bound for China, India and South Korea.
Boosting the country's petrochemical revenues entails...
SP Phases 17-18  Output Increases
Major overhaul operations in phases 17 and 18 of the giant...
NISOC in Close Cooperation With Domestic Academic Centers
National Iranian South Oil Company can implement complicated...
Special Devices for Gas Regulating Stations
Some 150 natural gas pressure regulating stations have been...

Trending

Googleplus