On Monday, oil prices resumed its fall after the meeting of the largest exporters in Qatar ended without agreement. As a result of failed negotiations confidence of markets in the effectiveness of OPEC policies decreased, while the world is still stamped in excess of raw materials.
For example, many analysts argue that tensions between Saudi Arabia and Iran has become the main cause of the completion of the meeting in Doha without any apparent results. This position of the two countries has raised fears that the avid competitors will continue to fight for market share by offering more discounts on their goods.
"Today, OPEC's credibility on the issue of coordination of production is very low," - says Peter Lee, an analyst at energy markets in Division Fitch BMI Research rating agency.
Morgan Stanley analysts said that the outcome of negotiations after the successful negotiations in February underlines the differences between the members of OPEC, adding that now the risk of growth of supplies from OPEC member countries - is very high.
In early trading on Monday, the price of futures for Brent oil fell by 6%, before recovered to $ 41.29 per barrel.The price on the world oil benchmark is still 4.2% after the announcement of the results of the negotiations of the largest producers on Sunday. US crude oil futures fell in price by 4.63% to $ 38.49 per barrel.
On the question of whether the unsuccessful negotiations will lead to an additional discount, vice president of the largest importer of oil in Indonesia Pertamina Daniel Purba he said: "We hope so."
Iran was the only member of OPEC, who did not attend the talks in Doha.
Given the failed talks in Doha, Peter Lee of BMI Research believes that the price of Brent crude oil again dropped below $ 40 per barrel.
Analysts at Barclays say that in the second quarter of this year, the price of Brent crude oil is expected to average $ 36 per barrel.