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Oil collapses after no Doha deal

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 17, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Crude Oil contract WTI has opened under extreme pressure, last at $37.65 from last Friday's close above $40 after the long-awaited Doha Oil meeting failed to agree on any production freeze in order to further stabilize prices.

    No deal without Iran, says Saudi Arabia

    As Reuters reported earlier on Sunday, OPEC and non-OPEC ministers concluded the Doha talk without an agreement. According to sources familiar with the matter, the refusal of Saudi Arabian leaders to reach any sort of deal without Iran being on board led to the collapse in the prospects of any possible, and while the meeting carried on for another 8 to 10h, the latest draft statement contained nothing of substance.

    Faith on production freezes destroyed

    Oil market has been trading on a more constructive fashion, with the failed Doha meeting one of the main factors having recently supported the recovery. Now that all bets are off for a production freeze deal in the near term, with politics getting in the way once again, it looks as though it is the perfect excuse for Oil bears to re-engage on what might be a nasty selling campaign over the coming days even weeks.

    The Financial Times cites Mohammed Bin Saleh Al-Sada, Qatar’s energy minister, saying "we all need time for further consultation.” Falah Alamri, the Iraqi representativ, also wmade some juicy comments, noting that "“we are very very disappointed as this will effect the oil price and our earnings. We wanted a deal.”
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