No
Deal: Doha Talks End Without Agreement
17
April, 2016
The
most anticlimiatic culmination to the most farcical "agreement"
of 2016, one which could have been seen a mile away by any
carbon-based trader not housed in a collocated, supercooled facility
in Secaucus, has taken place and here is the "shocking"
result:
- OPEC, NON-OPEC MINISTERS FINISH OIL TALKS IN DOHA, NO AGREEMENT - RTRS
- OIL PRODUCERS END DOHA TALKS: OMAN MINISTER - BBG
- DOHA OIL TALKS FINISH WITHOUT FREEZE DEAL: NIGERIAN MINISTER - BBG
- OMAN MINISTER SAYS OIL PRODUCERS NEED MORE TIME TO REACH DEAL
Negotiations between 16 oil producers in Doha ended without any agreement on limiting supplies, a diplomatic failure that threatens to renew the rout in prices.
The summit in the Qatari capital, which dragged on for more than ten hours beyond its initially scheduled conclusion, finished with no final accord, Nigeria’s Petroleum Minister Emmanuel Kachikwu told reporters. Discussions stumbled over whether the agreement should extend to other producers such as Iran, which wasn’t present, according to a person familiar with the matter. The inability to reach consensus will lead to a “severe” drop in prices, Citigroup Inc. predicted before the meeting.
“The Doha meeting was an opportunity for OPEC to polish its tarnished image,” Miswin Mahesh, an analyst at Barclays Plc in London, said on April 15. “After the failure of OPEC’s December meeting, the market was uneasy about its cohesion and Doha was a chance for the group to reassert its relevance and build a circle of trust.”
As
reported earlier, and as has been reported for weeks, the failure to
reach a deal was as a result of Saudi intervention, who have been the
only dominant force among oil producing nations, ever since the
Saudis killed OPEC as a cartel in November 2014. Here is the FT
regurgitating what
is already known:
Delegates said Saudi Arabia had in effect torn up an earlier draft of the deal as it decided it could not be party to an agreement that would give Iran any leeway. Tehran had refused to join the freeze as it rebuilds its oil exports after years of sanctions.
Iraq,
to be sure, was quite displeased: "We
are very, very disappointed," said Iraq's representative. "This
will effect the price and our earnings. We wanted a deal."
But
the Saudis - who are about to drink everyone's milkshake again - did
not, despite
so much optimism for a deal ahead of the meeting...
Of
course, one has to keep the dream alive, and sure enough the strawman
for more headlines is set:
- OIL-PRODUCING NATIONS WILL MEET AGAIN, PROBABLY JUNE: NIGERIA - BBG
Will
it once again work to fool the idiot algos, with recurring headlines
of another "imminent certain deal", which will ram the
shorts for another 2 months of stop hunts? Probably. The only
question is whether Venezuela's regime will survive for another two
months.
What
happens next? Again here is Citi's Ed Morse with the obvious next
steps:
If there is no agreement, then expect a sharp oil market sell-off on Monday.
And
now we begin counting down the hours until oil opens for trading,
pardon, selling unless the BOJ decides it will soak up every last
drop on offer.
From RT
No oil production freeze agreement after talks break down in Qatar
Despite
crisis talks in Qatari capital Doha stretching late into the late,
OPEC and non-OPEC oil producers have failed to agree on a cap that
would prop up oil prices, which have been collapsing over the past
year.
At
the final press conference on Sunday evening, Qatar's energy and
industry minister, Mohammed bin Saleh al-Sada, said countries at the
talks would “need more time” for consultations, before attempting
to make a deal, likely at the next scheduled talks in June.
Sources
told Reuters that members of the Middle East-dominated OPEC plan to
negotiate among themselves, before presenting a more united position
to those outside the group.
The
18 countries that gathered in Doha, which included Russia and Saudi
Arabia, represent nearly three quarters of the world’s oil output.
According to a leaked draft of a final agreement, the signees would
agree to cap production at January 2016 levels.
But
the talks hit a last minute hitch, when Saudi Arabia demanded that
regional rival Iran also freeze its own output. Iran, which had
planned to send a delegation to the meeting, before pulling out at
the last moment, says it has no intentions of curtailing production,
after suffering years of recently-lifted EU and US nuclear sanctions.
Russia ‘disappointed’ by Qatar oil talks after ‘last-minute demands’ from Gulf states
Qatar's
Minister of Energy and Industry Mohammed Saleh al-Sada (C), Saudi
Arabia's minister of Oil and Mineral Resources Ali al-Naimi (C-L),
Venezuela's minister of petroleum and mining Eulogio Del Pino (L),
and Russia's Energy Minister Alexander Novak (C-R). © Olya Morvan /
AFP
Alexander
Novak, Russia’s energy minister, blamed OPEC states for “undoing
two months of negotiations” by presenting demands on the morning of
oil production freeze talks in Doha, which ended with no deal having
been reached.
Speaking
to Russian media following the conclusion of the discussions, which
lasted over 12 hours, Novak explained that the 11 OPEC states, and
seven outsiders present in the Qatari capital had spent two months
drafting an agreement that would cap oil production at January
levels, to avoid a further price collapse.
"Some
OPEC countries decided to change their terms at the last moment,
trying to get concessions from countries that are not here. We were
insisting on trying to concentrate on the countries which are," said
the official.
Qatar's
Minister of Energy and Industry Mohammed Saleh al-Sada (C), Saudi
Arabia's minister of Oil and Mineral Resources Ali al-Naimi (C-L),
Venezuela's minister of petroleum and mining Eulogio Del Pino (L),
and Russia's Energy Minister Alexander Novak (C-R). © Olya Morvan /
AFP
Alexander
Novak, Russia’s energy minister, blamed OPEC states for “undoing
two months of negotiations” by presenting demands on the morning of
oil production freeze talks in Doha, which ended with no deal having
been reached.
Speaking
to Russian media following the conclusion of the discussions, which
lasted over 12 hours, Novak explained that the 11 OPEC states, and
seven outsiders present in the Qatari capital had spent two months
drafting an agreement that would cap oil production at January
levels, to avoid a further price collapse.
"Some
OPEC countries decided to change their terms at the last moment,
trying to get concessions from countries that are not here. We were
insisting on trying to concentrate on the countries which are," said
the official.
No comments:
Post a Comment
Note: only a member of this blog may post a comment.