The negotiations held yesterday in Doha, Qatar, lasted for more than 12 hours, but the oil producing countries parties failed to reach an agreement the stabilize the market.
The sides stated that they need more time for consideration, while the market is doing well as it is. Recently, the price of oil has increased just on the expectations of the agreement on oil production freeze, but after the negotiations in Doha failed, analysts find it possible it may go down.
The market participants are fixing profits, but there is no panic. Moreover, the price of Brent today has gained back half of what it lost after the collapse of negotiations in Doha. As of 15:05 MSK futures price for Brent oil with delivery in June of 2016 on the ICE exchange in London decreased by 3.5%, to $41.59 per barrel. But at the same time, during the opening of the London Stock Exchange this night, the price of Brent dropped by 7%, TASS reports.
Judging by the first fluctuations in Brent quotes, Doha's failure was no surprise for the traders. Despite the absence of stable oil sales, results of the meeting in Doha will put pressure on oil quotes in the near future. Experts do not exclude corrective decrease in Brent oil prices to $30-35 per barrel, but most of them agree on the fact that the bottom bracket will be at the level of $40 per barrel.
"While the of oil production freeze is still on the agenda and must be discussed at the OPEC meeting on June 2nd, market expectations of the oil production freeze, which led to the price increase of more than $40 per barrel in March, may die out, which will lead to the correction in the oil prices back to $30-35 per barrel in a short term," the director of analytical department of Gazprombank Alexander Nazarov stated.
The failure of the oil-producing countries to reach an agreement in Doha has made many analyst revise their forecasts. They also expect a drop in the price of oil back to $30 per barrel within a few days.
