The commodity is falling as European markets observe the Easter holiday break and as other investors are still slow to build up long positions following the oil price rebound of the last two months, Reuters reports.
Crude oil (WTI) is sliding by 0.58% to $39.23 per barrel and Brent crude is retreating by 0.94% to $40.06 per barrel.
Oil moved below $40 per barrel this morning as investors doubt that talks due to be held by oil producers next month will result in a reduction in the global supply glut.
Iran and Libya are the two members of OPEC that have not agreed to attend the production freeze talks on April 17 in Doha, Qatar, Bloomberg reports.
"There's a growing realization that the meeting in Doha is not going to be effective," Thomas Finlon, director of Energy Analytics Group told Bloomberg. "The U.S. has lost about 500,000 barrels a day from its peak but the Iranians are planning to increase output by more than 1 million, so we're going to see the surplus grow."
Separately, TheStreet Ratings has set a "sell" rating and a score of D- on WPX Energy stock. This is driven by several weaknesses, which TheStreet Ratings believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks it covers.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: WPX