The outcome of the latest OPEC meeting was in line with market expectations of a non-announcement, after a April meeting in Doha disappointed investors as talks of an output freeze dissipated .
Oil prices have fallen by as much as 70 percent since the summer of 2014 due to burgeoning energy output and a slowdown in global growth.
Despite steep losses that have hit major oil producing economies, OPEC has stood pat on its production policy and is now pumping around 32 million barrels a day as kingpin Saudi Arabia persisted with its strategy of low-cost production to squeeze out smaller and higher-cost shale oil producers.
With its most recent non-action however, OPEC is effectively ceding its position as a price-maker, said Neil Beveridge, senior analyst at Bernstein Research.
"OPEC is saying we'll let the market decide on price rather than OPEC...Effectively, shale is now the swing producer in the global market, it's not OPEC," he told CNBC's "Squawk Box".
Still strong global demand is likely to boost oil prices in the second half of 2016, particularly as non-OPEC production falls amid supply disruptions in Canada, Nigeria and potentially Venezuela, Beveridge added.
Iran's return to the market after Western sanctions were lifted has added to supply pressures as the country's refused to budge on increasing its supply.