Oil Meeting in Qatar Collapses Without Freeze as Iran Absent

A meeting of oil-rich countries in Qatar that had been expected to boost crude prices by freezing production fell apart Sunday as Iran stayed home and vowed to increase its output despite threats by Saudi Arabia.

Qatar's Minister of Energy and Industry Mohammed Saleh al-Sada (C), Saudi Arabia's Minister of Oil and Mineral Resources Ali al-Naimi (C-L), Venezuela's minister of petroleum and mining Eulogio Del Pino (L), and Russia's Energy Minister Alexander Novak (C-R) attend a press conference in the Qatari capital Doha on Feb. 16, 2016. Energy giants Saudi Arabia and Russia agreed to freeze oil output to try to stabilise the market if other major producers do the same, Qatar's oil minister said. Olya Morvan/AFP/Getty Images

DOHA, Qatar—A meeting of oil-rich countries in Qatar that had been expected to boost crude prices by freezing production fell apart Sunday as Iran stayed home and vowed to increase its output despite threats by Saudi Arabia.

Oil prices, which hit a 12-year low in January by dipping under $30 a barrel, had risen above $40 in recent days, buoyed by the bullish talks surrounding the Doha summit.

But instead of a quick approval of a production freeze, the meeting of 18 oil-producing nations saw hours of debate and resembled the dysfunction of an unsuccessful meeting of the Organization of the Petroleum Exporting Countries in December that sent oil prices tumbling.

The fact that producers couldn’t agree to a freeze, let alone a production cut, likely means oil prices will drop again as markets open Monday.

Prices will trade lower. Maybe sharply lower.

— Robert Yawger, director of energy futures, Mizuho Securities USA