Everything you need to know about the Doha Summit...

Whichever way you look at it, April 17 is going to be an important day for people living in the Gulf and the wider Middle East.

Countries in charge of almost 60 per cent of the world’s oil production will gather in the Qatari capital to discuss freezing their output at January levels in an effort to stabilise prices.

While Russia, Saudi Arabia, Qatar and Venezuela made a preliminary deal in February, more producers are expected to join them to arrest the slide of oil prices. Here is a look at everything you need to know about the situation on the ground.

Who all are attending?

In addition to Russia, Saudi Arabia, Qatar and Venezuela, Algeria, Angola, Azerbaijan, Colombia, Ecuador, Indonesia, Iran, Iraq, Kazakhstan, Kuwait, Mexico, Nigeria, Oman and the United Arab Emirates have confirmed their participation.

Who all are not attending?

Some of the world’s biggest oil producers - USA, Canada, China, Brazil and Norway – will not be attending. Libya will be the only OPEC county missing in action in Doha. Iran is a key OPEC member resisting a production freeze.

Will an agreement be made?

The jury is out on whether a deal will be struck. While Qatar says it has a ‘positive feeling’ and Russia’s Energy Ministry is ‘optimistic,’ Saudi Arabia will cap its output only if Iran follows suit. This scenario is ging to be unlikely.

How will a price freeze affect oil prices?

Crude rallied to above $40 a barrel since the preliminary freeze accord was signed. A new deal, with more producers joining in, could see that price getting as high as $50. However, the oil glut is likely to remain the same as Saudi and Russia are already pumping near record levels.

Will the freeze make a difference?

With most Doha participants already expected to keep output steady, much more important for the oil market will be what happens in the USA and Iran. Declining shale oil production is expected to make up the lion’s share of the 710,000 barrel-a-day reduction in output from non-OPEC countries this year. Iran plans to increase production by about 700,000 barrels a day this year from the 3.3 million pumped in March.

What if a deal does not materialise?

If the officials fail to reach an accord, prices are likely to see a ‘severe negative impact.’ OPEC’s refusal to cut output in 2014 prompted calls to write the group’s obituary, and an inability to finalize the freeze might see those epitaphs being carved. The coming days could drag prices down to $30 a barrel.

Courtesy: bloomberg.com