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Oil prices recover early losses after no agreement on production freeze

Published 18/04/2016, 14:02
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Investing.com - Oil prices recovered some of their early losses on Monday after tumbling in early trade as markets reacted to news that a meeting of major producers in Doha on Sunday ended without an agreement on capping production.

Brent crude futures were down 3.43% at $41.62 at 11:09GMT after dropping almost 7% earlier.

U.S. crude futures were down 3.62% at $40.20 a barrel after early falls of more than 5%.

The talks collapsed after Saudi Arabia demanded that OPEC member Iran also join a production freeze intended to rein in ballooning overproduction and bolster prices.

Iran had already declined to take parts in the talks and said it would not participate in an output freeze until its output levels return to where they were before international sanctions were imposed over its nuclear program.

Oil prices had rallied from January’s lows since the proposed freeze was first mooted in February, amid optimism that a deal would help ease the global supply glut that has seen prices sink from levels as high as $115 hit in mid-2014.

But analysts had cautioned that freezing production near current levels would be unlikely to reduce the supply glut.

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