It's not good news for anyone hoping to see oil prices continue to rise.
Talks in Doha, Qatar amongst some of the world's major oil producers failed to reach a final agreement on cuts to production that would have helped to stabilize oil prices.
Hopes amongst attending nations was to see an agreement hammered out that would increase oil revenues to these oil nations, but Saudi Arabia threw a wrench into talks at the start of the day with an expectation by the world's number one producer and exporter that all OPEC nations would participate in production cuts. Word silently hinting to Iran to join in.
It was the Saudi's last hope, as well as OPEC's...
Iran, the major bone of contention, was expected to follow along as a fellow OPEC member, and sign on to the "gentleman's agreement" to maintain output at January levels ranging close to 32.4 million barrels a day. Iran, fully aware of it's own standing amongst OPEC members, already had in place it's own position as regards to their own nation's output: They fully expected to replace lost market-share from sanctions placed on the OPEC member in UN resolution 1636 that saw production curtailed and shut in.
Saudi Arabia was an OPEC member that fully benefitted from Iran's lost customer base...
Was there any hope of these nations reaching consensus in Doha based on a mutual dislike for each other?
While some thought there would be, it seems that the conditions were already set in the oil markets for a complete and utter race to the bottom of the barrel to oil prices. While some thought that $40 US was a new bottom, it seems more than likely that a downwards slide in oil prices is about to begin again.
While this is an oil war no side will win, both fully deserve the market-share they so rightfully deserve.
"Pump madly and keep pumping away" seems to be the new OPEC order of the day, every day that much closer to the end of the organisation that held world economies hostage for so long.
Somehow, it all seems so fitting...