OPEC members failed on Sunday to reach an output deal that would have frozen production at January levels.

Members of OPEC along with representatives from Russia met in Doha over the weekend but could not agree on a production accord after Iran held firm in its refusal to sign on to a pact.

Representatives from Iran reportedly did not attend the meeting, Reuters said.

Saudi Arabia, OPEC’s largest producer, said it would not participate in a deal unless Iran also signed on.

Iran has repeatedly said it would not agree to production cuts now that Western oil sanctions have been lifted.

According to Platts, Iran posted the largest production gain of any OPEC member in March after its production grew by 110,000 bpd to 32.3 million bpd thanks to growing demand from Indian and South Korean refiners.

Overall, OPEC production climbed past the 32 million barrel per day mark in March.

IG market analyst Angus Nicholson told Reuters that Saudi Arabia was not inclined to “freeze their own production and make way for newly sanctions-free Iran to increase their market share.”

Political tensions between Sunni majority Saudi Arabia and Shia majority Iran may have also doomed the deal as both countries continue to fight proxy wars in Syria and Yemen.

Brent crude pries briefly fell to about $40 per barrel after news of the failed meeting broke before bouncing back up to $41.32 per barrel   before the opening bell on Monday.

In OPEC’s latest monthly oil market report, the group said it expects global oil demand to grow by 1.54 million barrels per day, down by about 50,000 bpd from the group’s previous forecast.

Non-OPEC supply growth for 2015 was revised up to by 1.46 million bpd to an average 57.13 million bpd.

OPEC is scheduled to meet again on June 2 in Vienna.


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