FXStreet (Delhi) – Research Team at ANZ, notes that oil found some support last week as hope of supply cuts permeated through the market. Key Quotes “A meeting between Russia and OPEC had been mooted, with Russia suggesting it could join a potential coordinated approach on oil output. A 5% cut to output had been raised at the last OPEC meeting. We believe the likelihood of such action occurring is extremely low. Russia is heavily reliant on oil, which contributes 40% to its budget revenue. Russia also remains on track to produce a record high 10.9 Mb/d in January and thus appears unlikely to curb output. Meanwhile OPEC remains steadfast in its strategy of maintaining current output levels. There are also political barriers in place, with Saudi Arabia and Russia currently backing opposite sides in the Syrian conflict. We still see the possibility of prices dipping into the mid-20s in coming months. With Iran now able to boost exports and inventories continuing to build in the US, fundamentals are likely to deteriorate further before they improve.” For more information, read our latest forex news.