Oil has been a tough debate whether to increased the price or negotiate with other countries. In this situation Saudi Arabia refuses to deal since Iran has been committed to obey the international laws and negotiate their nuclear program. In other words, the conflict that its happening now affects the price of the petroleum and many countries in the Middle East gets affected by this conflict.
U.S oil price has been increasing more than 50 percent and the problem is that if there are no negotiations then the process would stop and the price would increase. Saudi Arabia and Russia did agree to freeze their production while the global output continues to exceed demand and would lead to an output cut near the future. The meeting fail on Sunday in Qatar at the Organization of the Petroleum Exporting Countries because the prices were dropping to quick on other countries.
To most economic analysts this means that the failure negotiations will only be limited until a further negotiations will be approved. Kuwait Oil Company released their average in which they said that there is an output of 1.1 million barrels per day which is not good to Kuwait because this could cause a crisis on exporting since the demand will increase. It looks like the future will depend on Saudi Arabia and Iran pledging together since most of the countries like China, Mexico, Russia and the U.S will continue to decline their prices. Gasoline future recently fell to 0.3 percent to $1.4576 a gallon and the Diesel fuel has increased 1.5 percent to $1.2509 a gallon.http://www.wsj.com/articles/oil-prices-fall-5-in-late-asia-trading-1460964703
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