Oil Prices Tumble 5% as Producers fail to coordinate output.
Oil Prices tumbled 5 % after meeting by major producers in Qatar. International Benchmark Brent Crude futures were trading at USD 40.86 per barrel at 0029GMT, down 5.2 percent since their last settlement.
Some 18 oil exporting nations, including non-OPEC Russia, had gathered at Qatar for what was expected to be a rubber stamping of a deal to stabilize output at January levels until October 2016.
The failure is negative from the psychological point of view. It shows the inability of all sides to cooperate
Oil prices have fallen by as much as 70 percent since mid-2014 as producers have pumped 1 to 2 million barrels of crude every day in excess of demand, leaving storage tanks around the world filled to the rims with unsold fuel.
Beyond the failed deal, however, there were signs of a tightening market due to an oil worker strike in Kuwait which may have cut its production from 2.85 million barrels per day (bpd) to just 1.1 million bpd.
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