Crude prices fell today, after renewed hopes over a possible meeting of Opec producers gave way to pessimism.
Brent crude, the global benchmark, fell 0.79 per cent to $45.03 per barrel this morning. Its US counterpart, West Texas Intermediate crude, slumped 0.60 per cent to $42.76.
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Venezuelan oil minister, Eulogio del Pino, said yesterday that a meeting between Organisation of Petroleum Exporting Countries (Opec) and non-Opec members may take place "in the coming weeks".
Other Opec officials have suggested that an output freeze deal could be discussed at an already scheduled meeting in September, however Russia has said it doesn't see any grounds for holding production at current levels.
Qatar's energy minister and Opec President, Mohammad bin Saleh al-Sada, said yesterday that the cartel was in continuous talks to stabilise the market.
Data from industry group the American Petroleum Institute due out later today should shed more light on US oil production.
"It would appear that Opec's plan to continue to pump at record levels and let the market price out higher cost competitors in the US shale industry has backfired," Craig Erlam, senior market analyst at Oanda, said.
"While some have inevitably gone bust or been bought out, the industry as a whole appears to have adjusted at a much faster pace than expected and now we find ourselves in a position in which oil rigs are rising again and the output decline appears to have stabilised."
"Higher US production could be on the horizon and with other supply disruptions having been resolves, we appear to be headed for further supply driven declines."