Crude oil prices extended losses for the fifth straight session on Wednesday ahead of the Organization of the Petroleum Exporting Countries (OPEC) meeting on Friday and the oil cartel is widely expected to keep oil output unchanged despite the global glut.
Brent crude oil prices touched a low $43.75 a barrel, its lowest level since 23 November.
Despite an appeal from Venezuela, OPEC is highly unlikely to announce a cut in oil production in a bid to avoid other producers such as Russia and North America from taking away a part of its market shares.
"Although OPEC member Venezuela made its usual appeal for a production cut yesterday, there is no sign from the key decision-makers that this will happen. In fact, they seem more willing to accept further price discounts in order to sell their oil," said Commerzbank Corporates & Markets in a note.
Overall, oil prices have fallen by over 60% since June 2014 due to an increase in US oil production and many experts remain doubtful on a recovery in oil prices in 2016 too.
"OPEC could spark further pressure on prices if it decides on Friday, when Indonesia rejoins the cartel, actually to increase its production target by more than the 900,000 barrels per day that Indonesia currently produces so as to make room for additional oil from Iran," Commerzbank said.