Doha to host oil producers meet today

Date

4/16/2016 9:55:34 PM

(MENAFN- The Peninsula)

DOHA: At least 15 oil-producing nations representing about 73 percent of world output are expected at today’s Doha meeting to approve a freeze on oil production. The gathering follows a surprise Doha meeting in February between Qatar Russia Saudi Arabia and Venezuela in which they pledged to cap their crude output to January levels if other producers do the same AP reported.

While markets may well react off any decision made today in Doha analysts predict low prices will continue through this year and into the next as producers keep pumping to keep their government budgets afloat.

“We put the probability of a successful freeze agreement ... at 50 percent” Societe Generale analyst Michael Wittner wrote this month.

The countries hope the cap will help global oil prices rebound from their dramatic fall since summer 2014 when prices stood at above $100 a barrel though no one is talking seriously about the more dramatic step of reducing global supply by collectively cutting production for now.

Prices dropped briefly under $30 a barrel a 12-year low in January but have climbed to around $40 a barrel this week boosted in part by market speculation about the coming meeting.

The Peninsula

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