OPEC's Credibility Takes A Hit With The Collapse Of The Doha Oil Talks

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Reuters: Botched Doha deal undermines OPEC credibility, oil prices tumble

SINGAPORE (Reuters) - Oil prices tumbled on Monday after a meeting by major exporters in Qatar collapsed without an agreement to freeze output, leaving the credibility of the OPEC producer cartel in tatters and the world awash with unwanted fuel.

Tensions between Saudi Arabia and Iran were blamed for the failure, which revived industry fears that major government-controlled producers will increase their battle for market share by offering ever-steeper discounts.

"OPEC's credibility to coordinate output is now very low," said Peter Lee of BMI Research, a unit of rating agency Fitch. "This isn't just about oil for the Saudis. It's as much about regional politics."

Morgan Stanley said that the failed deal "underscores the poor state of OPEC relations," adding that "we now see a growing risk of higher OPEC supply," especially as Saudi Arabia threatened it could hike output following the failed deal.

Oil prices have fallen by as much as 70 percent since mid-2014 as producers have pumped 1 to 2 million barrels of crude every day in excess of demand, leaving storage tanks around the world filled to the rims with unsold fuel.

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WNU Editor: The next OPEC meeting is in June .... my prediction (and it is an easy one) .... no agreement will come from that meeting either.

More News On The Collapse Of The Doha Oil Talks

Oil Prices Regain Deepest Losses After Deal to Freeze Production Fails -- NYT
Oil prices slide after demise of freeze plan -- Reuters
Oil Falls Below $40 a Barrel After Output Deal Fails -- WSJ
Oil is getting obliterated because Iran is going rogue against the world -- Lianna Brinded, business Insider
Failure In The Doha Oil Talks Sets The Scene For Wholesale Political And Market Drama -- Tim Treadgold, Forbes
Key facts about the Doha oil meeting collapse -- Reuters