A meeting between oil producing nations over the weekend to discuss a possible output freeze has ended without a deal. It was hoped that this meeting would finally see OPEC cut its production and force the price of oil up. However, the familiar issue of Saudi Arabia not wanting to loose market share to Iran forced the meeting to end without a deal being made.
Since the price of oil began to fall at the beginning of 2015, Saudi Arabia has refused to cut supply for fear of loosing market share. This has been due to a combination of changes in the market such as the United Stated starting to export oil again for the first time in 40 years and international sanctions being lifted on Iran.
It is believed that growing tensions between Saudi Arabia and Iran was the key reason behind the discussions falling short. Iran has said since it had the international sanctions lifted that it would not freeze output until it gained some more market share back.
Although signs are pointing to another drop in oil price, analysts expects prices to level out for the rest of 2016. Although there was no deal made to cut or freeze oil output, the low prices over the past 12 months have had a huge affect on oil producing countries. The number of oil fields in the United States has almost halved since the beginning of 2015 and counties such as Kuwait are facing strikes by workers against cuts to their pay due to reduced profits.