The Prospects of further price reduction of crude oil - Negotiation talks fail
Posted on: 19/Apr/2016 4:12:47 PM
International oil production companies planned to reduce the production of oil owing to the trend of severe falling prices of crude oil in the international market.
There was a meeting conducted on this issue yesterday (Monday, 18th April) at Doha, the capital city of Qatar.
Leaders from 18 petrol manufacturing countries participated. The talks ended in a failure.
Hence, it is expected that there will be further reduction in international crude oil prices.
Recently, the price of the crude oil in the international market reduced to 30 US Dollars per barrel. Following this, oil-rich Arabian countries decided create the increase in demand for petroleum products by reducing the production of crude oil, the price of the crude oil in the international market increased gradually and currently, it is 40 US Dollars per barrel.
18 countries producing 73 percent of the world oil production decided to meet in Doha, the capital city of Qatar, in order to prevent further reduction of crude oil prices. Saudi Arabia`s Minister for Petroleum Ali Al Nimi, and petroleum ministers of countries like Nigeria, Venezuela, and Russia participated in this meeting.
The meeting was presided by the Fuel & Industry Minister of Qatar. However, Iran and America did not participate in this meeting.
Iran has already declared it will not approve any decisions taken in this meeting. In this scenario, the discussion in the meeting ended in a failure.
Given the prevailing situation, it may require more time to decide on a plan to reduce production of petrol. At the same time, there is a recent trend of increase in crude oil prices in the international market. In view of the above 2 factors, no final decision was taken during the meeting at Doha.
It was also observed that it would be futile if Iran & America refuse to cut down the production of oil when other countries stop production as it would hardly have any effect. News is gathered that crude oil prices are likely to reduce further in the coming days.
As per yesterday`s position, crude oil price in the Indian Commodity Market was Rs. 2650/- per barrel.
Today (Tuesday, 19th April) is a commercial holiday due to Mahavir Jayanthi.
