Oil prices tumble after a meeting by major exporters in Qatar collapsed without an agreement to freeze output. As Hayley Platt reports, it's left the credibility of the OPEC producer cartel in tatters and the world awash with unwanted fuel.
The disappointment in Doha at the weekend sent the price of oil tumbling. The world was left grappling with an excess of unwanted crude after 18 oil nations failed to agree on anything. Saudi Arabia - OPEC's de facto leader - blamed Iran who weren't even at the meeting. They wanted ALL producers to agree a freeze. (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING (on OPEC): "OPEC has no discipline. They can't agree on an output reduction to the January level. It's definitely negative that Iran and Saudi Arabia can't work together." Failure to reach a deal sent Brent crude down almost 7 percent before recovering to almost $42 per barrel. But it was no where near the $80 a barrel OPEC would like. US crude futures also took a hit - losing more than 3 percent to nearly $39 North American shale exporters have been hard hit in recent months. (SOUNDBITE) (English) CEBR, CHIEF ECONOMIC ADVISER, VICKY PRYCE, SAYING: "The reality is that we now have such a disparate set of countries with different needs in terms of what sort of revenue they require and also in terms of what price the dollar per barrel each of them can live with. The Gulf states they now have huge costs because of the way they run the economy and so they actually need a higher oil price. There are others who can very happily survive from much lower oil price." OPEC took over a large chunk of Iran's market share when sanctions were first imposed. Saudi Arabia in particularly is keen not to give it back. The impact of the failure is also a worry - oil prices had been recovering prior to the meeting They've certainly been halted for now - and possibly longer.