The global energy industry will have its eyes keenly set on Qatar as the all-important meeting of major oil producers takes place in Doha on April 17 in an effort to bolster prices, which have declined significantly in the past several months.
Qatar, which holds the rotating presidency of the Organisation of Petroleum Exporting Countries, is hosting the upcoming talks between Opec member states and other major oil producers to stabilise the market.
The gathering, which will build on earlier talks that included major suppliers such as Russia and Saudi Arabia, seems to reflect a growing sense of urgency among producers to try to shore up crude prices following a steep drop that is straining their domestic budgets.
HE the Minister of Energy and Industry, Dr Mohamed bin Saleh al-Sada, the current president of the Opec Conference, said some 15 oil-producing nations, accounting for 73% of the world output have agreed to take part.
He said, “The continuous efforts of the Qatari government have been instrumental in promoting dialogue among all oil producers to support the Doha initiative, helping the stabilisation of the oil market to the interest of all.”
Last month, at a meeting in Doha the energy ministers from Russia and Opec members Saudi Arabia, Qatar and Venezuela had pledged to cap their output levels if others do the same in an effort to bolster oil prices.
Oil prices plunged to below $30 a barrel - their lowest point in more than a decade - earlier this year, extending a slide from $100 plus a barrel, which began in 2014.
But prices have edged higher in recent weeks, with the US benchmark crude breaking above $40 a barrel on March 17 for the first time this year, extending a rally that has seen prices rebound 53% from their lowest level in more than a decade.
The recent oil rally is also driven by the announcement on the mid-April Doha meeting, which is expected to draw a plan to support the global oil market.
The slump has already caused panic in some countries that are heavily dependent on oil exports, leading them to slash many public sector jobs and search for new sources of revenue.
Qatar, as the president of Organisation of Petroleum Exporting Countries, has been co-ordinating with Opec and non-Opec oil producers to gather more support for the Doha initiative.
Clearly, the current crude prices are highly unsustainable. This is evident by the unprecedented drop in investment in the oil industry, which has indeed started to impact oil production worldwide, showing a decline that is likely to continue.
Global oil and gas investments are expected to fall to their lowest in six years to $522bn in 2016, following a 22% fall to $595bn in 2015, according to the Oslo-based consultancy Rystad Energy.