Oil prices fell for a second day on Tuesday, as concerns emerged that a six-week rally may have fizzled after OPEC doused hopes for a speedy erosion of a global overhang of unwanted crude.
The Organization of the Petroleum Exporting Countries said on Monday demand for its crude would be less than previously thought in 2016 as supply from rivals proves more resilient to low prices, increasing excess supply in the market.
To tackle the surplus, Saudi Arabia and non-OPEC member Russia, the world’s two largest oil exporters, along with Qatar and Venezuela have proposed major producers freeze output at January levels.
Even with the proposed freeze, continuously high production means global output still exceeds demand by at least 1 million barrels per day (bpd).
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