Investing.com - Global oil prices are set to settle this week down slightly, as analysts say speculators are taking a break from making bullish bets. This is removing some of the momentum from the market, which had been rallying for the last month.
American oil data is also putting downward pressure on crude, according to analysts.
What is more, sources at the Organization of Petroleum Exporting Countries (OPEC) said that production cuts likely won't go as planned by the oil cartel. "Compliance won't be 100 percent, it never is," the source told reporters.
The official added that a compliance rate of 60% would be good enough to accomplish the alliance's goals. Compliance of 80% would be considered "positive," the OPEC official said.
The comments come after Saudi Arabia and Kuwait this week disclosed that they have cut more than they had promised, hoping the reductions will help make up for some non-compliance elsewhere.
Saudi output is down below 10 million barrels per day and Saudi officials said it could slip further in February.
The U.S. is not cooperating with OPEC, and that factor is hurting global prices as well.
Crude stockpiles in the U.S. rose last week by 4.1 million barrels, according to the U.S. government.
Gasoline stocks also increased. Reports from the U.S. Energy Department's Energy Information Administration (EIA) weekly newsletter showed an increase in output by about 176,000 bpd last week, considered a staggering increase in production by analysts that may offset OPEC production cuts.