Oil prices tumble after failure of Doha talks

Singapore

OIL prices tumbled on Monday after a meeting by major exporters in Qatar collapsed without an agreement to freeze output, leaving the credibility of the Organization of the Petroleum Exporting Countries (Opec) producer cartel in tatters and the world awash with unwanted fuel.

Tensions between Saudi Arabia and Iran were blamed for the failure, which revived fears that major government-controlled producers will increase their battle for market share by offering ever-steeper discounts.

"Opec's credibility to coordinate output is now very low," said Peter Lee of BMI Research, a unit of rating agency Fitch. "This isn't just about oil for the Saudis. It's as much about regional politics."

Morgan Stanley said that the failed deal "underscores the poor state of Opec relations", adding that "we now see a growing risk of higher Opec supply", especially as Saudi Arabia threatened it could hike output following the failed dea…