The oil market rallied on Tuesday morning as chatter emerged that Qatar, Venezuela, Saudi Arabia and Russia met to freeze output of oil at January levels. After the brief rally, oil resumed its bearish position as none of the oil producing countries bit the bullet and cut production.
"They're freezing levels at record levels, so that's not really a less bearish scenario," Kyle Cooper, Criterion Research managing director of oil and energy, told CNBC's "Power Lunch" on Tuesday. "Iran hasn't chimed in at all, and they're still actually claiming for increased output."
In the same vein, the oversupplied oil market has witnessed no catalyst that has increase demand. Meanwhile, oil prices have continued to flirt within the upper $20 range. Due to no reduction in current output levels, Cooper anticipates that oil prices could still go lower.
"I think there's at least a 50/50 chance that we test the $26.05 from last week," he said. "Then I think you got something in the $22, $23 type range."
Low oil prices raise the question of the possible investment risks for energy investors.
In a low oil price environment, "all stocks have become oil stocks," Jerry Castellini, CastleArk Management president and CIO, told CNBC.