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April 10, 2016

Oil prices drop after banks caution on impact of producers’ meeting at Doha

Oil prices have fallen after banks urged caution on the impact of a meeting of major producers at Doha on 17 April on a proposal to freeze output.

Oil prices have fallen after banks urged caution on the impact of a meeting of major producers at Doha on 17 April on a proposal to freeze output.

Brent crude futures slipped 12 cents at $41.82 a barrel, while the US WTI crude edged down 22 cents and traded at $39.50 a barrel, Reuters reported.

Goldman Sachs analysts told the news agency: "A production freeze at recent production levels would not accelerate the rebalancing of the oil market as OPEC (excluding Iran) and Russian production levels have this year remained close to our 2016 average annual forecast of 40.5 million bpd."

"The meeting may have limited impact because producers with potential to increase production are not expected to agree with the output freeze proposal."

The meeting may have limited impact because few producers with potential to increase production are not expected to agree with the output freeze proposal, Barclays said.

Azerbaijan minister of energy Natig Aliyev also received invitation and is set to represent the country at the meeting of the Organization of Petroleum Exporting Countries (OPEC) members and members that are considered the main oil producers.

Aliyev said that the country’s production in the first quarter declined 1.6% to 10.496 million tonnes compared with a year earlier.

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The latest meeting is a continuation of the meeting that was previously held on 16 February in Doha where Saudi Arabia, Russia and Venezuela proposed the freeze of output in 2016 at January levels, News.Az reported.

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