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Oil producers risk new crude price collapse

VIDEO2:5802:58
One story that could move oil higher: Helima Croft

Producing nations risk an oil bust if they don't reach a freeze agreement of some sort when they meet in Doha, Qatar, this weekend.

Market expectations are high and rising for a deal, and crude futures have been climbing as a result, but an accord that would halt production growth will be difficult to reach and difficult to keep. Even if there is an agreement among OPEC and non-OPEC producers, capping production would still leave a glut of oil on the world market.

Oil saw its latest pop after Russia's representative to OPEC was quoted by Interfax on Tuesday saying that Russia hopes to reach a deal even though there are disagreements between Saudi Arabia and Iran. West Texas Intermediate futures settled at $42.17 per barrel, their highest close since November. Brent rose close to $45 per barrel.

"I think with all the countries gathering, if there is not an agreement, prices will fall sharply and for each of them, it means new pain in their budget. It will hurt them a lot," said Daniel Yergin, vice chairman of IHS. "Being able to sustain prices convincingly above $40 is very much in their interest."