Oil May Break Through $40 as OPEC Supply Hits Three Year High

Oil prices won’t be seeing the floor just yet, as crude continues to slide Tuesday following the release of the monthly oil market report from the Organization of the Petroleum Exporting Countries. In July, OPEC posted the highest crude supply in more than three years, despite the global surplus. The group which is responsible for 40 percent of world oil supplies, increased output by 100,700 barrels a day to 31.5 million last month. That figure is 1.5 million barrels a day higher than the 12-nation group's stated output ceiling that members endorsed back in June. But, OPEC is feeling the heat as Iran restored pumping to its highest level since 2012 following the nuclear deal. Richard Mallinson, analyst at Energy Aspects says OPEC countries are not likely to cut production to help boost prices anytime soon. Mallinson says there are some discussions going on among different OPEC members, but the most powerful member led by Saudi Arabia has no interest in cutting output in order to support prices. TheStreet's Kurumi Fukushima reports in New York.