By Parth Parikh,
Money & Investing Writer
This past weekend, members of eighteen oil producing nations gathered in Doha, Qatar to discuss the recent oil imbalance that has rocked the global markets since December of last year.
Back in December, the OPEC countries held their annual OPEC meeting to decide on a limit to the production of oil each nation will enact for a period of time.
The Doha meeting was held to combat the OPEC meeting that ended with no results because after the OPEC meeting, countries were mass-producing oil in large amounts, bringing down the price of a barrel of oil and rocking the global markets for months.
The result of the Doha meeting was the same as that December OPEC meeting: no nation was able to come up with a limit to the amount of crude oil they will produce, hence letting each oil-producing nation to pump out as much oil as they possibly can and sell them on the market.
The meeting fell apart after Saudi Arabia refused to freeze their production of oil unless Iran puts a cap on theirs, limiting both nations of full-scale oil drilling.
Iran, a country who was not invited to the Doha meeting, has said in recent news reports that they refuse to cap their oil production, thus ending another oil conference in Qatar with no limitations on the amounts of oil any nation can produce.
Many experts were hoping for a tentative idea as to how much oil the nations involved should produce to prevent an oil surplus in the world.
Those experts were also hoping that Iran would attend the meeting to settle the issue with Saudi Arabia in a neutral nation.
With Iran’s refusal to attend though, the experts were very wary of any deal that might be reached and believed that having an idea as to how much each nation should produce would be vital to the other emerging nations who could not produce as much as Saudi Arabia and Iran.
The result of the Doha meeting brought down oil prices, as West Texas Intermediate, or WTI Crude Oil fell $2.72 to $39.03 a barrel in one trading session and WTI Crude did not reach the initial $41.75 mark until early Tuesday morning.
The drop in oil is not as much as we saw during the OPEC meeting, when oil fell from $49.44 to $45.35, with after-effects bringing oil down to $33.34.
Brent Crude, which is oil drilled from Europe, fell from $42.97 to $40.69 in a matter of a weekend due to the Doha meeting.
The result of the Doha meeting is very similar to that of the OPEC meeting held in December, when nations like Saudi Arabia and the United States could not reach on a deal when many news outlets were reporting a deal was on the table and that it was being worked on.
The result of that OPEC meeting was a global meltdown, as oil and commodities prices in general were bringing global indexes and markets down for the entire month of January.
All eyes are now set on June, as OPEC holds yet another meeting to decide on what oil output levels would be most beneficial to each country as well as the world.
Let’s see if the dueling nations can find a middle ground and help stabilize oil prices around the world.
A version of this article appeared in the Tuesday, April 26th print edition.
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