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Doha talks fail, stoking fears of another oil price plunge

Fort McMurray, AB, Canada / MIX 103.7
Doha talks fail, stoking fears of another oil price plunge

OPEC countries won’t be freezing their production anytime soon.

Talks in Doha, Qatar broke down on Sunday when Iran insisted that they need to continue expanding their production in a post-sanctions era, the Globe and Mail reports.

Saudi officials said they wouldn’t put a production freeze in place until their rivals in Tehran did the same. However, Iran is resisting as they attempt to recover from almost a decade of heavy sanctions that have greatly hindered the country’s oil production and economy.

Oil prices responded severely in early trading in Europe, where the commodity dropped by more than 7 per cent. The price began to rally once North American markets opened, sitting just under $40/bbl, a 1.2% drop, as of 10:30 a.m. MT.

The price of crude is expected to be temporarily bolstered by an oil-worker strike in Kuwait, but the disruption is thought to be short-lived. Goldman Sachs is projecting an average oil price of $35/bbl for the second quarter, recovering to a $45 average for the year.

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