Brent costed less than $40 per barrel again yesterday for the first time since February 2009 but recovered upto 40.46, WTI has been lingering with bearish favorite figure at 37.75 ahead of inventory data.

No doubt it was above all the longer-term outlook on the oil market that allowed the price to recover somewhat after all in the late course of trading.

The flop-show of OPEC member states to reach any consensus initially continued to have after-effects yesterday: after all, the fact that members were unable to set any production limit means that a continued high level of production is likely, which will leave the market oversupplied.

The US EIA's short-term energy outlook confirmed that oil production seems robust at the current edge, (growing production in the Gulf of Mexico factors in), and therefore raised its production estimate for the current year again slightly.

However, projections for US production to fall sharply on average next year, namely by a good 500,000 barrels per day; from this April's high to the anticipated low next September, production is even expected to decrease by more than one million barrels per day.

Outlook for 2016 - supply glut to decline - This will reduce the oversupply during the course of next year, which we believe will spark recovering prices.

No doubt the short-term trends are also being dictated by the current "status reports" for US crude oil stocks. The American Petroleum Institute has reported a decrease for last week. If this is confirmed by the official figures which would release shortly, this should lend support to the price.