Oil prices tumble after producers failed to reach a deal

CCTV Africa

Published on Apr 19, 2016

Crude oil prices fell by over 6% in early trade, and then regained some ground on Monday after oil producers failed to reach an agreement to freeze production. U.S. crude futures fell under $ 40 a barrel, to $ 37.61, down by nearly 7%. Brent futures fell by a similar margin, falling to $ 41.23 a barrel. Effort to reach a consensus between OPEC and non-OPEC producers to freeze output at January levels in order to support prices failed after Iran stayed away from the weekend meeting of 18 oil producing nations, and Saudi Arabia insisted on having all OPEC members implement the deal, including Iran. Oil prices hit a 12-year low in January, under $ 30 a barrel, but they had risen above $ 40 in recent days. Analysts say the weekend’s setback means prices will likely remain lower in the longer run but the recent cutbacks in investments may help to re-balance supply and demand.

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