Russia benefits from crude production freeze talks despite failure to reach deal

Russia benefits from crude production freeze talks despite failure to reach deal
Rising oil prices ahead of the production freeze talks in Doha added $3.7 billion to the value of Russian output, according to Bloomberg based on data from the International Energy Agency.

Saudi Arabia got a $3.3 billion boost. Even the countries not involved in the talks have benefited from the freeze fuss. The US got a $3 billion boost in two months with Canada earning an extra $1.5 billion before the talks came to an end without an agreement last Sunday.

Despite the failure to reach a deal in Doha, global energy firms collected $32 billion in extra revenue since the first rumors Saudi Arabia and Russia aimed to freeze output leaked, the data says.

Crude producers counted on market stabilization even if the output freeze deal wasn’t sealed, according to the agency. Brent crude gained nearly $10 per barrel to about $43 in the two month preceding the meeting in Doha.

READ MORE: Oil slips on failed Doha deal

Surging crude prices may have been the main reason why Saudi Arabia backed out of the deal which it initiated.

The discussions between the world’s major producers broke down after Riyadh rejected any deal until all the Organization of Petroleum Exporting Countries (OPEC) members including Iran joined the talks.

Iran says it has no plans of curtailing oil production before reaching pre-sanctions levels of four million barrels per day. Tehran had planned to send a delegation to Qatar, but pulled out the last moment.

OPEC members and other oil producers may meet in Moscow next month to try to reach an agreement on an output freeze. However, that may not happen if oil prices keep rising.