Agreement by world oil exporters to cap crude output in doubt

Tom Hinde

The recent agreement reached in Doha, Qatar to limit oil production appears to be falling apart. Oil powerhouses Russia, Saudi Arabia, Qatar and Venezuela had pledged to cap their crude output if other countries followed suit. The effort is aimed at stabilizing global oil prices. Oil prices have dropped below $30 a barrel recently. Oil closed at $29.72 in market's yesterday.

The proposal appears to be falling apart. Iran announced it plans to increase production. Experts say Iran is trying to ramp up exports to regain market share now that sanctions related to its nuclear program have been lifted under a landmark agreement. Iran used to export 2.3 million barrels per day, but its crude exports fell to 1 million in 2012, when sanctions were tightened.