A meeting of the world’s biggest oil producers have failed to reach the agreement of capping oil production because of Iran absence. The Iran stayed home and vowed to increase its output despite threats by Saudi Arabia. The Organisation of the Petroleum Exporting Countries (OPEC) meeting was going on in the Qatar. After hours of talks in Qatar, the country’s Energy Minister Mohammed bin Saleh al-Sada said that the oil producers needed more time to discuss on the issue.
As the main aim of the meeting was the freezing output and reassuring markets that a recent recovery in prices could be sustained. And the other producers were trying to agree that average daily crude oil production in the coming months would not exceed levels recorded earlier.
Most members of the OPEC producers’ group plus other oil exporters including Russia attended the talks. They wanted a deal that would freeze output and help stem the plunge in crude prices over the past 18 months. Oil prices tumbled in Asian trading as a result, with the price of both US and London crude oil down more than 5%.
The meeting faced difficulties as it has emerged with some tensions between Iran and Saudi Arabia. Iran did not attend the meeting. Saudi Arabia, the world’s largest oil exporter appeared willing to only freeze output if all OPEC members agreed including Iran. But Iran maintained it would continue the increase in oil production it has followed since economic sanctions were lifted earlier this year.
The next scheduled of OPEC meeting is in June this year.
Extra Info :
The Organization of the Petroleum Exporting Countries (OPEC) founded in : Baghdad, Iraq in 1960.
OPEC Headquarter : Vienna, Austria
Member : 13 Countries
So lets discuss some questions related to this post :
1. The OPEC meet which collapsed without freeze was going on at which place ?
2. Expand the term OPEC and where is the headquarter of OPEC ?
3. What was the reason of failure of OPEC meet ?
Courtesy : PTI News