Oil markets stabilize, shrug off Doha disappointment

The decline in the oil price following the failure of Doha talks on Sunday was short-lived with the price on Brent crude rising back above USD43/bbl this morning. Recovery in prics suggested that unless outright production cuts are brought to the table, OPEC's leverage over the oil price is minimal.

The stabilization of oil prices close to the levels seen in the run-up to Sunday’s Doha meeting of the major producers helped to support a broad risk-on mood among Asian equities, especially in Japan and Australia.

"We still expect the price on Brent crude to average USD46/bbl in Q4 16 and USD52/bbl in 2017," said Danske Bank in a report.