The development will revive oil industry fears that major
producers are embarking again on a battle for market share, especially after
Riyadh threatened to raise output steeply if no freeze deal were reached.
Iran is also pledging to ramp up production following the
lifting of Western sanctions in January, making a compromise with Riyadh almost
impossible as the two fight proxy wars in Yemen and Syria.
Some 18 oil nations, including non-OPEC Russia, gathered
in the Qatari capital of Doha for what was expected to be the rubber-stamping
of a deal - in the making since February - to stabilize output at January
levels until October 2016.
But OPEC's de facto leader Saudi Arabia told participants
it wanted all members of the Organization of the Petroleum Exporting Countries
to take part in the freeze, including Iran, which was absent from the talks.
Tehran had refused to stabilize production, seeking to
regain market share post-sanctions.
After five hours of fierce debate about the wording of a
communiqué - including between Saudi Arabia and Russia - delegates and
ministers announced no deal had been reached.
"We concluded we all need time to consult
further," Qatar's energy minister Mohammed al-Sada told reporters. Several
OPEC sources said if Iran agreed to join the freeze at the next OPEC meeting on
June 2, talks with non-OPEC producers could resume.
Russian oil minister Alexander Novak called the Saudi
demand "unreasonable" and said he was disappointed as he had come to
Doha under the impression that all sides would sign the deal instead of
debating it.
Novak said Russia was not shutting the door on a deal but
the government would not restrain output for now.
Russia is a key ally of Iran and has been defending
Tehran's right to raise output post-sanctions while also supporting the Islamic
Republic in many of its conflicts with Riyadh.
Saudi Arabia has taken a tough stance on Iran, the only
major OPEC producer to refuse to participate in the freeze.
Deputy Crown Prince Mohammed bin Salman told Bloomberg
that the kingdom could quickly raise production and would restrain its output
only if Iran agreed to a freeze.
Iran's oil minister Bijan Zanganeh said on Saturday OPEC
and non-OPEC should simply accept the reality of Iran's return to the oil
market: "If Iran freezes its oil production ... it cannot benefit from the
lifting of sanctions