One comment on “Monday 18 April, 2016 Update: Doha Fails To Mend Oil Markets

  1. Reblogged this on Eyes on Europe & Middle East News and commented:
    The key point of disagreement arose between Iran and Saudi Arabia. Riyadh refuses to make any concessions to its regional archrival, who seek to increase their oil output to pre-sanction levels.

    The Doha failure reflects long-standing disagreements between the two Persian Gulf powers over regional supremacy and conflicts in Syria and Yemen. It also confirms the fact that Opec, and Saudi Arabia, lost their ability to act as a global swing producer, which puts the 56 year old Cartel’s existence and purpose into question.

    In practice however, the meeting would not change much in terms of global demand and supply. The participating countries were discussing capping oil production at their current almost record high levels, which still leaves the markets well oversupplied.

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