Dubai: There is no sign of any good news for crude oil this week.
Brent crude tumbled on Tuesday, bringing the total loss to 10 per cent in just two trading sessions as traders braced for a large surplus globally in absence of any deal between Russia and Opec members.
“Prices are dropping lower again as the constructive dialogues between the Opec and non Opec countries has broken once again and we have less hopes that we will happy ending,” Naeem Aslam, chief market analyst with AVA Trade, told Gulf News.
Russia’s energy minister and Venezuela’s oil minister discussed the possibility of holding joint consultations between Organization of the Petroleum Exporting Countries (Opec) and non-Opec countries in the near future, the Russian Energy Ministry said on Monday.
But Goldman Sachs said it was “highly unlikely” they would cooperate with Russia to cut output, saying such a move would also be self-defeating as stronger prices would bring previously shelved production back to the market.
Brent crude traded at 3.88 per cent lower at $32.91 per barrel on Tuesday, after losing more than 6 per cent in the previous session. Oil has lost about 17 per cent this year amid volatility in global markets, brimming US crude supplies and the outlook for increased exports from Iran after the removal of international sanctions.
“We envisage that area of $35-40 will serve as a meaningful resistance zone and the only tail wind which help the price to sail through this zone will be in the form of production cut- at least for now,” Aslam said.
