Oil meeting in Qatar collapses; Iran absent

Associated Press

DOHA, QATAR

A meeting of oil-rich countries in Qatar that had been expected to boost crude prices by freezing production fell apart Sunday as Iran stayed home and vowed to increase its output despite threats by Saudi Arabia.

Oil prices, which hit a 12-year low in January by dipping under $30 a barrel, had risen above $40 in recent days, buoyed by the bullish talks surrounding the Doha summit.

But instead of a quick approval of a production freeze, the meeting of 18 oil-producing nations saw hours of debate and resembled the dysfunction of an unsuccessful meeting of the Organization of the Petroleum Exporting Countries in December that sent oil prices tumbling.

The fact that producers couldn’t agree to a freeze, let alone a production cut, likely means oil prices will drop again as markets open today.

“Prices will trade lower. Maybe sharply lower,” said Robert Yawger, director of energy futures at Mizuho Securities USA, noting the failure to reach agreement in Doha.

He noted that other factors were negatively impacting prices: U.S. crude oil storage remaining at all- time highs, Iran increasing production, and Libya looming on the horizon to boost output.