Qatar meeting ended without agreement on oil – ElEspectador.com

The negotiations in Doha, including 16 oil-producing countries, ended without any agreement on limiting supply, a diplomatic failure that threatens the renewal of the route prices

the summit in the capital of Qatar, which was held for more than ten hours over schedule, ended without agreement, told media oil minister of Nigeria, Emmanuel Kachikwu. Discussions suffered setbacks in addressing whether or not to include in the agreement to other producers such as Iran, which was not present, according to a source close to the matter. The inability to reach consensus will lead to a “severe” price fall predicted Citigroup Inc. before the meeting.

The ministers participating in the discussions had expressed support for a draft agreement to freeze until October crude production to January levels, thus stabilizing the market and support prices, weighed down by excess supply.

But the differences between Iran and Saudi Arabia, the two great rivals East Middle, reemerged even before the Doha meeting.

a barrel of Brent crude, which fell in January to its lowest level in twelve years, has climbed nearly 30% in the last two months, while Saudi Arabia and Russia worked on a plan to limit production. While analysts doubted that any agreement had a significant impact on world oil supplies, the inability to agree on a limit undermines any prospect of coordinated action to resolve the crisis in oil prices.

“The meeting in Doha was an opportunity for OPEC polished into its tarnished image, “said Mahesh Miswin, an analyst at Barclays Plc in London. “After the failure of the OPEC meeting in December, the market has been worried about the cohesion and Doha was an opportunity to reaffirm its relevance and build a circle of trust”.

What are the implications for Colombia?

according to Jose Manuel Restrepo, director of the University of Rosario, the slight increase in oil prices could be observed in recent days is a sign that the markets anticipated, driven by a optimistic about the meeting failed in Doha feeling. “He does not deal leaves us in uncertainty because the floor had found prices may cease to exist and continue to fall,” said Restrepo.

Analysts agree that the outcome of the meeting for countries which depend heavily on the production and sale of commodities, such as Colombia, it is negative. Ensure that the situation becoming increasingly remote possibility that a barrel of crude is even close to the US $ 50 and anticipate an appreciation of the dollar. Although, according to Restrepo, the decline in oil inventories in the US “can help levels of world oil supply are not so high”.

For Camilo Silva, founder of Valora Investment partner, now it must wait for the meeting to be OPEC midyear to see if there is agreement or not with respect to production. The results of yesterday in Doha, Silva added, can anticipate that the Federal Reserve (Fed) will not raise rates at its next meeting. “Pressure on banks not to raise rates will be maintained. Oil is the most important catalyst for the markets for inflation. If low price, inflation in the United States hardly rebound and that is an effect that is waiting for the Fed to raise rates. “