Crude oil is back in the red after the much-awaited meeting between OPEC members Saudi Arabia and Venezuela concluded without provide any strong indication that measures will be taken to help oil prices stabilise.
Brent futures lost $0.61 to trade at $33.45 while WTI Crude oil fell by as much as 1.59% to trade at a level near $30. The volume in oil was thin as most of Asia’s markets were closed on account of the Chinese Lunar New Year.
Saudi Arabia’s oil minister Ali al-Naimi had a formal discussion with his Venezuelan counterpart over the possibility of cooperation between OPEC and non-OPEC members to strengthen the oil price. The meeting, which took place on Monday did not reach any specific agreement regarding a further meeting between oil producing countries any time soon. While both countries called the meeting successful and productive, analysts did not really get a clear hint as to the purpose of it or what it supposedly accomplished.
Analysts not optimistic
David Hufton, analyst at PVM Oil Associates, warned that oil prices are set for another bumpy ride unless there is any surprising bullish news over the next few days.
Aside from that, statements from Tehran have kept the market nervous. Iranian Oil Minister Bijan Zanganeh stated that a number of companies in Europe have expressed interest in buying oil from them, which further confirms the fear that the oil oversupply is not going to be resolved shortly.
With nothing new on the horizon, market participants are tuned to U.S. Federal Reserve Chair Janet Yellen’s statement to lawmakers on Wednesday. Also, the market will anxiously wait for data from the Energy Information Administration, which is due to be released on the same day.
Alongside this, the monthly reports on oil to be released by the International Energy Agency, as well as OPEC this week, will grab most of the market’s attention. iPath S&P GSCI Crude Oil Total Return (NYSEARCA:OIL) had lost 1.64% to $4.81 during the last trading session.