After hours of talks in Qatar, the country’s energy minister Mohammed bin Saleh al-Sada said that the oil producers needed “more time”.
Most members of the Opec producers’ group, plus other oil exporters including Russia, attended the talks.
They wanted a deal that would freeze output and help stem the plunge in crude prices over the past 18 months.
“The general conclusion was that we need more time to consult among ourselves in Opec and non-Opec producers,” Mr Sada said.
Oil prices tumbled in Asian trading as a result, with the price of both US and London crude oil down more than 5%.
Talks hit difficulties earlier on Sunday as reports emerged of tensions between Iran and Saudi Arabia. Iran did not attend the meeting.
Saudi Arabia, the world’s largest oil exporter, appeared willing to only freeze output if all Opec members agreed, including Iran.
But Iran maintained it would continue the increase in oil production it has followed since economic sanctions were lifted earlier this year.
“As we’re not going to sign anything, and as we’re not part of the decision to freeze output, we ultimately decided it was not necessary to send a representative,” the Iranian government said.