Oil prices remain low due to the chances decreasing of an agreement within OPEC to cut output.
Brent crude futures LCOc1 dropped 50 cents to reach $44.25 a barrel, while NYMEX crude futures CLc1 fell 60 cents to touch at at $42.81 a barrel.
Petromatrix strategist Olivier Jakob was quoted by the news agency as saying: “In the same way that a strong OPEC agreement was needed to continue the rally above $55, a lack of agreement will be needed to break below $40 and right now, we're at $45.
“So I think on a risk basis, we're starting to be a bit more concerned about the upside price risk, than about the downside.”
OPEC plans to reduce the output by reaching an agreement at its 30 November meeting. However, analysts doubt its implementation.
OPEC stated that in October, its output touched a record 33.64 million barrels per day. It anticipates an even larger global surplus next year, if production remained unchecked.
Saudi Arabia Minister Khalid al-Falih also stated that it has become imperative for the OPEC countries to reach a consensus about production.
Only a few members are likely to agree as it will encourage the non-OPEC countries to produce more, which will in turn lead to imbalances.