This month’s Doha meeting of oil producers is being written off even before all the party invitations have been RSVP’d. And its immediate impact on production, let alone exports and prices, will indeed be limited. As the IEA’s executive director, Fatih Birol, told Argus earlier this week, $60/bl could be a price cap as higher values would suck US unconventional producers back into the fray.
But an unpublicised parallel agenda is being circulated to invitees ahead of the meeting and the outcome of these talks could be profound. Each delegation has been asked to propose the basis for a new quota allocation system, and this time it would be one that would include major non-Opec producer countries.