Oil Prices Drop After IEA Warns Production Freeze Is “Meaningless”

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Brent wanton futures are adult some-more than 50 percent from a 12-year low nearby $27 a tub strike early this year, bouncing behind after Russia and OPEC’s Saudi Arabia, Venezuela and Qatar struck an agreement final month to keep outlay during Jan levels.

Qatar has invited all 13 members of a Organization of a Petroleum Exporting Countries (OPEC) and vital non-OPEC producers to Doha on Apr 17 for another turn of talks to dilate a prolongation solidify deal.

“Amongst a organisation of countries (participating in a meeting) that we’re wakeful of, only Saudi Arabia has any ability to boost a production,” pronounced Neil Atkinson, conduct of a IEA’s oil attention and markets division, during an attention event.

“So a solidify on prolongation is maybe rather meaningless. It’s some-more some kind of gesticulate that maybe is directed … to build certainty that there will be fortitude in oil prices.”

Libya has assimilated Iran in snubbing a initiative, and a deficiency of a dual OPEC producers – both with plenty room to boost outlay – would extent a impact of any success in broadening a solidify during a Apr meeting.

The arise in outlay from Iran in a initial entertain post-sanctions has been in line with IEA’s expectancy of 300,000 barrels per day (bpd), Atkinson said, adding that Tehran’s outlay could arise again by a same volume by a third quarter.

“Iran has not accurately been flooding a marketplace with lots some-more oil. It seems to be distant some-more measured,” Atkinson said.