Brent crude slid below 56 US dollars per barrel on Monday. The fall extended the losses from the previous session on the back of a possible petroleum production increase from Iran.
Tehran is in talks with six major powers for a deal that could lift oil export sanctions. Front-month US West Texas Intermediate crude futures fell to 48 US dollars per barrel.
The U.S. oil rig count continues to fall, although analysts say producers are ready to shore up output after successfully raising equity and that the lower drilling activity would only affect actual production later this year.
Analysts also say that U.S. production would be higher next year.