Doha Oil Summit
The upcoming meeting on Sunday, the 17th of April, of the top oil ministers from around the globe in Doha, Qatar will be significant. The meeting will consist of most OPEC members and Russia and the subject of Crude Oil production will be discussed. In mid-February a tentative agreement was reached by Russia and Saudi Arabia this in order to cut back Crude Oil output.
However, the output reductions were never fully instituted because Saudi Arabia has taken the stance that it will only cut back on production if all members of OPEC agree and implement controls. One of the biggest problems is that Iran, which has recently emerged from years of international sanctions, is in a vulnerable position because it had planned on large production in order to bolster its economy which has been struggling. Iran has not wanted to cut back on its intended numbers in order to meet its economic goals.
Saudi Arabia and Iran have many political differences and the tension has created trouble in trying to come to an agreement on what each nation should produce. Part of the problem is that the two nations distrust each other so much, that even if an output reduction is agreed to that it will be hard to verify between the two. It is still not certain that Iran will attend the meeting in Doha this weekend and this is a major concern.
The price of Crude Oil internationally has declined dramatically on a combination of oversupply and weakened demand because of the global economic problems that have persisted. Both WTI Refers to West Texas Intermediate Refers to West Texas Intermediate Refers to West Texas Intermediate which is often the actual physical resource that the asset Crude O... More which is often the actual physical resource that the asset Crude O... More which is often the actual physical resource that the asset Crude O... More and Brent Crude have seen significant price deterioration and unless an agreement is practiced and verified by OPEC, Russia, and other major energy producers the value of the commodity will continue to face pressure.
The past few days have seen Crude Oil trade in better territory, but if the upcoming meeting this weekend in Doha does not produce a good result the price of Crude Oil could again quickly turn downwards. WTI Refers to West Texas Intermediate which is often the actual physical resource that the asset Crude O... More is trading above $40.00 in a rather stable range as of this writing, but the price is still vulnerable to poor sentiment.
The value of Crude Oil is having a significant impact on the global economic outlook presently, including the troubles it is causing for the bottom line of many financial institutions who hold corporate debt of Oil Corporations and are traders of the energy themselves. A good result in Doha would help create better price values for Crude Oil and have a positive impact on investor sentiment.