NEW YORK (TheStreet) -- Oil prices were lower in mid-afternoon trading on Tuesday, as hopes for a deal to come out of the informal OPEC meeting this week in Algeria begin to dwindle.
Some investors were looking for an oil production freeze deal between Russia and Saudi Arabia, and a production cap from Iran to come out of the meeting, which would cut down on the current global oil glut.
"Doesn't look like we're hearing much out of Algeria in terms of an OPEC deal. Is that what's killing crude today?" CNBC's Jackie DeAngelis asked NationsShares' CIO Scott Nations on Tuesday afternoon's "Halftime Report."
"It is. The Saudi oil minister said that Saudi Arabia will go along with the OPEC consensus. I didn't know that there was a consensus inside of OPEC," Nations answered.
The Saudi Arabians and Iranians are at about "6,000 barrels a day apart when it comes to reaching some sort of agreement," he noted. That means "oil is going to re-balance lower" as we have already seen today, he said.
What's interesting to me is how closely we're hugging $45 plus or minus a little bit. What are the levels that you're watching at this point? Which direction do you expect us to go?" DeAngelis asked DoubleLine Capital Chief Executive Jeffrey Gundlach.
"I think we go lower short-term Jackie," Gundlach said, adding that we could go as low as $41 again.
The OPEC meeting this week won't provide any news for us, Gundlach said in agreement with Nations.
"I think if you put Saudi Arabia and Iran in the same room, looking at a clock on the wall, they'd find a way to argue about the time," he said.