Oil prices fell on Tuesday despite Saudi Arabia and Russia agreeing to freeze oil output at January levels if other producers follow suit. Tuesday marked another drop in oil prices even though Russia and Saudi Arabia agreed to freeze oil output levels—only if other oil producers did the same. Venezuela and Qatar also agreed during their meeting in Doha with Russia and Saudi Arabia.
Brent crude went down 3.2%--$32.33 per barrel despite a 5% increase earlier and US crude went down %2 $29.14. In June of 2014, oil was at $116.
Saudi Arabian oil minister Ali al-Naimi said: "Freezing now at the January level is adequate for the market. We don't want significant gyrations in prices, we want to meet demand. We want a stable oil price."
Another proponent of freezing oil prices was Venezuela's oil minister, Eulogio Del Pino who visited major oil producers to help stabilise prices.
He said: "We have reached a historic deal for Venezuela and other countries in favour of market stabilisation." Del Pino also said he planned on meeting with Iran and Iraq on Wednesday.
Iraq’s Minister of Oil however, said he would commit to the freeze in oil prices only if all oil producing nations were able to reach an agreement
Iraq’s oil production in January reached around 4.7 million barrels per day.
Iraq is Opec's second largest oil producer, according to the International Energy Agency.