The prices of Brent on Tuesday, dropped more than 5% while US crude fell below $30 a barrel.

Hopes for an agreement between the Organization of Petroleum Exporting Countries (OPEC) and Russia to reduce production has also been dashed.

Russian Energy Ministry had revealed that its energy minister and Venezuela’s oil minister held talks on the possibility of holding joint meetings between OPEC and non-OPEC countries in the future, This Day reports.

The American multinational investment banking firm, Goldman Sachs, had predicted that it was highly unlikely that the OPEC would work together with Russia to reduce production. The company added that a move like that will also be self-defeating as higher prices would bring formerly postponed production back to the market.

Russia’s Energy Ministry data on Tuesday revealed that oil production in the country increased to 10.88 million bpd in January, from 10.83 million bpd in December 2015.

According to a Reuters survey data, US commercial crude oil listing expectedly increased to a new record of 499.6 million barrels last week.

The declining oil prices has affected oil super majors. BP’s witnessed its worst yearly loss in more than 20 years in 2015, as its shares slumped more than 8 % while Exxon, announced a 58 % drop in its quarterly profit. The company plans to reduce expenses by a quarter this year.

Meanwhile Nigeria and Angola have turned to the World Bank for assistance. The two sub-Saharan African countries are the newest amongst a long line of oil exporting countries to look for financial help to curtail rising deficits as tumbling oil prices affects revenues.

Anita Fatunji