Oil under pressure amid diminishing hopes of an output deal

Oil prices extended losses during the American session amid diminishing hopes that the OPEC will reach an agreement to stabilize oil markets at its informal meeting in Algeria.

Both Saudi Arabia and Iran ministers played down expectations for a deal to freeze or cut oil production. Saudi Energy Minister Khalid al-Falih said that talks among OPEC and non-OPEC oil producers in Algiers are merely "consultative”. He later said he is confident of a deal but if not the case, the market will still recover. 

Meanwhile, Iran’s Oil Minister Bijan Zanganeh said “it is not the time for decision-making”. He said that Iran and Saudi Arabia made not proposals during their meeting.

Oil fell to a low of $44.35 a barrel on Tuesday, its lowest level in four days, although it managed to trim losses afterwards to trade around $45.05/bbl, down 1.55% on the day.