The price of oil has fallen again, despite Opec calling for co-operation with countries outside of the organisation.
Having seen prices drop to $28, there was a surprise 10% increase on Friday. But Brent crude oil fell 3% to $31.25 on Monday morning.
The latest decline comes after Opec (Organization of Petroleum Exporting Countries) called for greater co-operation between itself and non-Opec oil producing nations.
Opec secretary general Abdullah al-Badri said the two sides need to work together in order to boost oil prices.
“It is vital the market addresses the issue of the stock overhang. As you can see from previous cycles, once this overhang starts falling then prices start to rise.”
Opec, led by Saudi Arabia, is accountable for roughly 42% of the world’s oil supply, and has suffered the brunt of the blame for the more-than-70% drop in oil prices over the past 15 months. Oversupply is widely accepted to be the reason for the downfall, and Opec has so far resisted calls to cut production.
Despite his calls for greater co-operation, Mr al-Badri said non-Opec nations are largely to blame.
“Yes, Opec provided some of the additional supply last year, but the majority of this has come from non-Opec countries,” he said.
Mr al-Badri added: “The current environment is putting this future at risk. At current price levels, it is clear that not all of the necessary future investment is viable.”
Earlier today, Russia’s official statistics agency reported that the country’s economy shrank 3.7% in 2015, with falling oil prices playing a significant role.
Accountancy firm Moore Stephens also released figures today (Monday) which claim the number of insolvencies in the UK’s oil and gas industry jumped from 18 to 28 in 2015.