Global crude oil prices continue to move lower to hit multi-month lows, raising concerns over the prices touching a fresh yearly low in the coming months.
Brent crude prices dropped more than 2% to $51.10 a barrel on Monday amid continued glut.
After rebounding by over 50% from its yearly low of $43 per barrel hit in January this year, crude oil prices have again started slipping due to concerns over Iranian oil exports and increased output by the Organisation of Petroleum Exporting Countries (OPEC).
A Reuters survey showed that oil production by the OPEC touched its highest levels in "recent history" in July.
Besides, oil exports from Iran are expected to flood the market once sanctions are eased.
Iranian oil minister Bijan Zanganeh said that the country would like to increase oil production by 500,000 barrels per day (bpd) once the sanctions are lifted, Reuters reported.
On the other hand, OPEC countries, mainly Saudi Arabia, remain stubborn on not cutting output in order to protect market share.
"Christmas time we'll probably be rebounding off new lows off of the mid to low 30s," Again Capital founding partner John Kilduff, told CNBC.
Further, a recent increase in the US oil rig count is also weighing on the oil markets. Oil drillers have resumed production in the past two weeks.
"The current rig count implies that US production will sequentially decline in 3Q15 although continue to grow in 2016," Goldman Sachs said in a note.
Slowing activity in the world's second largest economy China is also putting pressure on the global oil demand situation.
China has witnessed high volatility in its stock markets in recent months despite the government's efforts to shore up investors' confidence.
"Recent developments in China and Iran may also contribute to another leg down in oil prices," said Kilduff.